ANZ Annual Profit Flat, Increases Dividend

By Alice Uribe

SYDNEY--ANZ Group Holdings said its annual net profit was flat on a year earlier, but the bank increased its dividend even as higher interest rates impact economic activity.

The Australian major lender reported a statutory profit of 7.1 billion Australian dollars (US$4.51 billion) for the 12 months through September. Analysts had expected a full-year net profit of A$7.21 billion, according to FactSet's consensus estimate.

Cash earnings--a measure tracked by analysts that strips out non-core items--rose by 14% to A$7.41 billion.

Chief Executive Shayne Elliott said the external environment is likely to remain challenging.

"We continued to strengthen our balance sheet and closed the year with provisions for potential credit losses higher than prior to the pandemic, and with more capital than ever before," he said. "This is critical as we enter a period of continued high interest rates, rising costs and geopolitical tensions."

The bank declared a final dividend of A$0.94 per share, comprising a A$0.81 partially franked payout and a one-off unfranked dividend of A$0.13. This compared with a A$0.74 dividend a year earlier.

ANZ's Common Equity Tier 1 capital ratio--a key measure of a bank's ability to withstand financial shocks--was up 105 basis points for the year at 13.3%.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

November 12, 2023 16:17 ET (21:17 GMT)

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