Australian banking giant ANZ has reported a profit of more than $7bn despite facing “external challenges”.
The big four bank announced on Monday an audited profit of $7.09bn for the full year ending September 30, 2023.
The banking giant’s cash profit also rose in 2023 by 14 per cent to $7.4bn compared to the previous year.
Despite the strong result, ANZ chief executive Shayne Elliott said the “external environment” was likely to remain challenging.
“The full impact of higher interest rates is expected to continue to impact economic activity,” he said.
“Our customers have so far proven resilient, with a relatively low level of delinquencies despite the current interest rate tightening cycle.
“We will continue to focus on supporting customers through what will likely be another year of cost-of-living pressures.”
Mr Elliot said he expected the economy to be supported by strong household savings, the housing market, migration, and low unemployment.
As for ANZ, Mr Elliot said the bank had itself managed costs to “partially offset” the high inflation environment amid continued investment.
All of the bank’s core divisions had reportedly returned “positive results”, with the NZ branch and new ANZ Plus platform performing well.
Notably, Mr Elliot said the bank closed the year with provisions for potential credit losses higher than prior to the pandemic.
It also did so with “more capital than ever before”.
“This is critical as we enter a period of continued high interest rates, rising costs and geopolitical tensions,” he said.
“The second half delivered an outstanding revenue and profit result, demonstrating the benefits of our diversified franchise.
“Overall, this is a strong result reflecting the benefits of our consistent strategy and a well-diversified portfolio of businesses.”
Mr Elliot said the bank would continue to manage costs to create capacity for further in ANZ Plus scheme moving forward.
The banking giant is also expected to learn in February 2024 the fate of its proposed application of bank Suncorp.
The Australian Consumer and Competition Commission shot down the deal, with ANZ since applying to the Australian Competition Tribunal for review.
In a statement, ANZ said that if the application was successful, completion would then remain subject to approval from the Treasurer and the legislative amendments
“We continue preparations to integrate Suncorp Bank into ANZ Group, subject to these conditions being met,” the statement said.
The reveal comes only days after fellow big four bank NAB posted a $7.7bn increase in cash earnings, despite “challenges”.