ANZ’s combined Australian retail and Suncorp mortgage book grew by roughly 4.8% to $417 billion in the 2025 financial year, underperforming both Westpac and NAB in the same period.
Net interest margins in ANZ’s core Australian lending segment declined by eight basis points to 1.83%, while group-wide net interest margins declined from 1.57% to 1.55%, due to deposit pricing pressure and increased wholesale funding costs.
Growth was broad-based across owner-occupied and investor segments, maintaining a 68%/ 31% split respectively.
Proprietary origination channels accounted for 39% of total flows, while broker-originated loans contributed 61%.
ANZ posted a bruising 10% slip in profits due to $1.1 billion worth of restructuring costs and regulatory fines incurred throughout the year, including $240 million tied to misconduct in both government and customer dealings.
Chief executive Nuno Matos, who was hired this year to help improve Australia’s fourth-largest bank’s fortunes, sought to draw a line under ANZ’s mediocre full-year results.
He said: “Today’s results highlight three things. First, our franchise has a strong competitive position. We have two scale markets, Australia and New Zealand, two market leading positions, our Institutional and New Zealand businesses, and a well-diversified business benefitting from our strong presence in Asia, the fastest growing economic region in the world.
“Second, we have a significant opportunity to improve our performance in Australia Retail and Business & Private Bank, while extending our leadership in Institutional and New Zealand…
“We continue to make progress on our immediate priorities at pace, including embedding our leadership team and our culture reset, accelerating the integration of Suncorp Bank, delivering the ANZ Plus single-customer front-end, simplifying the bank and reducing duplication, and improving non-financial risk management.
“The results we have announced today demonstrate our franchise is strong, but action is needed. We are absolutely committed to executing ANZ 2030 and are on the right path. As we deliver our strategy, we will accelerate growth and outperform the market, while delivering more for our customers."
