ANZ Group cash profit jumps 17% as cost cuts take hold

Feb 12 (Reuters) – ANZ Group said on Thursday its first-quarter cash profit rose 17% from its second-half 2025 quarterly average excluding significant items, showing early benefits from a cost-cutting overhaul under new CEO Nuno Matos. 

Cash profit for the three months to December 31 was A$1.94 billion ($1.38 billion), while statutory profit came in at A$1.87 billion. Cash return on tangible equity was up 173 basis points to 11.7% — a key measure of how efficiently the bank converts capital into earnings.

ANZ said it delivered an 8% reduction in expenses in the quarter, including from actions to “reduce duplication and simplify the organisation”.

The cost outperformance follows a broad reorganisation launched under new CEO Matos, including cuts to remove redundancies and streamline layers. ANZ said more than 60% of the 3,500 roles it previously announced had exited the bank by the end of December.

Reuters reported that the overhaul includes 3,500 job cuts by September this year, 1,000 contractor roles, and an A$560 million restructuring charge, with Matos saying the the company would also halt projects not aligned to priorities.

ANZ’s common equity tier 1 (CET1) ratio, a closely watched measure of its spare cash, edged up to 12.15% at December 31 from 12.03% at September 30. 

Its cost-to-income ratio fell to 49.5%, as operating expenses dropped 21%from the second-half quarterly average.

Revenue for the quarter rose 1% from the second-half quarterly average excluding significant items, with net interest margin up 2 basis points to 1.56% as funding mix shifts helped offset central bank rate cuts and loan competition.

Credit quality remained resilient, the bank said, with Australian housing loans 90+ days past due eased to 81 basis points. 

($1 = 1.4033 Australian dollars)

(Reporting by Roushni Nair & Rajasik Mukherjee in Bengaluru; Editing by Alan Barona and Vijay Kishore)