ANZ has posted a 14 per cent increase in half-year cash profit, reaching $3.6 billion, after chief executive Nuno Matos slashed 3,500 jobs as part of a major cost-cutting drive.
The result, announced on Friday, exceeded market expectations and was driven by a sharp reduction in expenses, with the bank's cost-to-income ratio improving to 44.2 per cent from 48.1 per cent a year earlier.
Cost-cutting strategy delivers results
Mr Matos, who took the helm in July 2024, has moved aggressively to streamline operations, targeting $1.8 billion in annual savings by 2027. The job cuts, which represent about 10 per cent of ANZ's workforce, have been a key component of that strategy.
"We are making good progress on our simplification agenda," Mr Matos said. "The actions we have taken are positioning ANZ to deliver sustainable growth and improved returns for shareholders."
The bank's statutory net profit after tax rose 12 per cent to $3.2 billion, while revenue increased 3 per cent to $10.1 billion, supported by growth in its institutional and retail divisions.
Dividend and outlook
ANZ declared an interim dividend of 83 cents per share, up from 74 cents in the prior corresponding period, reflecting the stronger earnings performance.
However, the bank cautioned that the economic outlook remains uncertain, with persistent inflation and elevated interest rates continuing to weigh on household budgets and business confidence.
"While we are seeing some signs of stabilisation, we remain vigilant about the macroeconomic environment," Mr Matos said.
ANZ shares rose 1.2 per cent in morning trade following the announcement, outperforming the broader market.
The result comes amid a broader trend of cost-cutting across Australia's major banks, as they grapple with rising technology expenses and regulatory pressures.
