ANZ –2.84%: delivered a solid 1H result, with cash profit beating expectations though broader headline revenue didn’t quite meet market expectations.
1H Result Highlights
- Cash profit: 3.78bn vs $3.69bn est.
- Net interest margin: 1.53% vs 1.56% y/y
- Operating expenses: $5.60bn, -3.9% y/y
- Interim dividend: $0.83 (unchanged but franking increased from 70% to 75%)
The standout was cost discipline, with expenses coming in below expectations, while bad and doubtful debts, although higher year-on-year, remained low and below forecasts.
Credit quality across the book remains strong, which has been a focus for the market recently. Despite minimal impact from the Middle East conflict to date, provisions were prudently increased, which aligns with the recent moves by Westpac and NAB.
Revenue was broadly in line, with some pressure on margins amid competition, while lending volumes and deposits continue to grow. The Australia Retail division showed strong improvement, up 34% year-on-year, highlighting progress in the turnaround strategy under new CEO Nuno Matos.
MM remains long and bullish ANZ
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