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ANZ announced its yearly results, with a statutory profit after tax of $6,535 million, down 8 per cent from the previous year. However, the acquisition of Suncorp Bank has skewed the results, said ANZ.
As with every bank at the moment, “intense” mortgage competition is also playing a major role in reducing profits. ANZ CEO Shayne Elliott noted that this year still saw the “second strongest revenue performance ever”.
“Competition in the sector has continued to be intense, particularly in home lending and deposits. Despite competition and inflation impacting profits, we reported our second strongest revenue performance ever and a full-year cash profit of $6.7 billion,” said Elliott.
“This was also a pivotal year for the Group given the successful acquisition of Suncorp Bank, which has contributed two months earnings to this result. Since first announcing the purchase in 2022, Suncorp Bank’s solid customer acquisition along with growth in home loans and deposits have been particular highlights. The significant work done to prepare for migration of customers also means we are well placed to deliver synergies faster than originally expected.”
He continued: “[We welcomed] 3,000 employees and about 1.2 million customers into ANZ. And we did that seamlessly. Of course, that brings revenue opportunities for ANZ and those customers get the benefits of our technology and services in the future.”
Broker flows at the bank saw an increase over the year, climbing from 64 per cent in the FY23 results to 65 per cent currently. Of these loans, owner-occupied made up 62 per cent and investor comprised 38 per cent. ANZ is still the major with the highest broker flows, with Westpac coming in second at 63.6 per cent.
The proprietary dropped from 43 per cent of total balances in FY23, to 41 per cent in FY24. Meanwhile, brokers climbed from 57 per cent to 59 per cent.
A major focus of the FY24 results was the retail banking division at the bank. ‘ANZ Plus’ is taking a strong priority, with group executive Australia retail at ANZ, Maile Carnegie noting that this service is becoming a “bedrock” of the division.
“ANZ Plus will become the bedrock of the division as we begin to migrate existing ANZ customers to this improved digital platform in coming years,” she said.
ANZ’s retail division accounted for 29 per cent of revenue for the bank over the financial year. Deposits increased by 70 per cent to about $16 billion, growing 9 per cent of the bank’s total deposit base.
Meanwhile, customer numbers grew 84 per cent to nearly 850,000, with nearly half of those customers who joined being new to ANZ. The largest demographic was younger customers – under the age of 25. Small business customers are expected to be able to use the platform soon too.
“New features added during the year, including an industry-first feature giving customers a consolidated view of all their bank accounts, will make it easier and safer to transition our existing customers to ANZ Plus, starting in 2025,” said Elliott.
“As industry-wide challenges remain in retail banking, this year again highlighted the benefits of our diverse portfolio with Institutional achieving record revenue, record profit before provisions and record return on equity. Our core Institutional transaction platform, Transactive Global, was a driving force of this success as we support our larger corporate customers with advanced transaction banking services.”
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