Considered among top quality dividend stocks, ANZ bank offers fair value to investors after recent corrections. With a high yield of 5.65%, it is one of the best long term dividend stocks.
ANZ Group Holdings Limited (ASX: ANZ)
ANZ New Zealand has reported stable financial performance for the year ending September 2024, with modest growth in net interest income, cash profit, and statutory profit, despite economic headwinds and a highly competitive banking environment. The bank’s resilience is evident in its disciplined cost management and strong capital position, enabling it to navigate market volatility and regulatory changes.
ANZ New Zealand recorded total operating income of NZ$5.05 billion, reflecting a 1% increase compared to the previous year. Net interest income grew to NZ$4.32 billion, up 2% from NZ$4.24 billion in 2023, driven by loan growth and steady deposit margins. However, other operating income declined by 6% to NZ$730 million, primarily due to lower fee-based income and reduced trading revenue.
Operating expenses increased 6% year-over-year to NZ$1.76 billion, reflecting higher compliance costs, inflationary pressures, and technology investments. Despite these challenges, profit before credit impairments and tax remained strong at NZ$3.29 billion, though down 2% from the prior year.
The bank reported a substantial 76% reduction in credit impairment charges, with net provisions totaling NZ$44 million, compared to NZ$183 million in 2023. This improvement reflects stable asset quality and a lower-than-expected rise in loan defaults.
Profit before tax increased by 2% to NZ$3.24 billion, while statutory profit came in at NZ$2.09 billion, a slight decline of 2%. Cash profit, which excludes certain one-off items, rose 1% to NZ$2.29 billion, reinforcing ANZ’s strong earnings stability.
Performance Across Business Segments
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Personal Banking: The segment delivered a flat full-year profit of NZ$1.13 billion, with 7% growth in the second half of the year, driven by continued mortgage lending demand and digital banking expansion.
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Business & Agricultural Banking: This division posted NZ$530 million in profit, a 3% decline from the previous year, largely due to higher competition in lending and increased funding costs.
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Institutional Banking: The segment performed well, with profit growing 6% year-over-year to NZ$573 million, benefiting from higher transaction volumes and strong balance sheet growth.
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Central Functions & Group Centre: These areas contributed NZ$47 million in profit, up 7% from 2023, reflecting improved cost efficiencies and treasury gains.
ANZ New Zealand remains well-capitalized, with strong liquidity levels supporting its ability to fund growth while maintaining regulatory compliance. The bank continues to prioritize risk management, with economic hedging strategies helping offset interest rate and foreign exchange fluctuations.
ANZ expects modest earnings growth 2025, focusing on:
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Expanding digital banking solutions to enhance customer experience.
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Maintaining disciplined cost control to offset rising regulatory and compliance expenses.
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Growing institutional and business banking portfolios, particularly in trade finance and sustainable lending.
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Investing in risk management technologies to navigate market volatility and changing credit conditions.
With a resilient business model, strong asset quality, and a disciplined approach to cost and risk management, ANZ New Zealand is well-positioned to deliver sustainable long-term value for shareholders and customers in 2025 and beyond.
(Source: Company’s Report)
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