ANZ profit surges to $7.6b as cost-cutting drive pays off

ANZ Bank reported a 31 per cent jump in cash profit to $7.6 billion for the year to September, after last year’s result was dragged down by charges from a cost-cutting drive.

ANZ said that if these “significant items” were excluded, its cash profits for the year rose 10 per cent.

The results showed ANZ’s bottom line benefited from a 14 per cent decline in operating expenses, while its operating income rose 3 per cent.

Provisions for bad and doubtful debts increased by 32 per cent to $582 million.

Chief executive Nuno Matos said the global backdrop had become more volatile in the past year, pointing to rising oil prices, geopolitical tensions and the artificial intelligence boom.

He said ANZ’s retail customers were “largely resilient” and the majority were ahead on their repayments.

“Competition for capital to fund data centres, government spending and the energy transition has intensified, with this expenditure super-cycle, combined with inflationary supply side shocks, driving interest rates higher globally. Against this backdrop, the economies across our geographic footprint remain relatively resilient,” he said.

More to come

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Clancy Yeates is deputy business editor. He has covered banking and financial services, and was previously national business correspondent in the Canberra bureau.Connect via X or email.