ANZ Bank shares post best single-day performance since 2020 as cost-cutting measures boost results

Australia's fourth largest bank, ANZ Group, exceeded analysts’ expectations for cost-cutting in the first quarter, driving its share price to its best single-day performance since 2020.

On Thursday, ANZ reported unaudited cash profit of AUD 1.94 billion for the three months ending December last year, up 6% year-on-year.

Excluding one-off items, profit rose 17% compared to the average of the previous two quarters. CEO Nuno Matos stated that this was due to the company's productivity enhancement initiatives.

The bank cut around 4,500 employees and contract workers in the second half of fiscal 2025, incurring a one-off cost of AUD 585 million. This move led to a 1% year-on-year decrease in operating expenses.

Analyst Thomas Strong wrote in a client note: “The better-than-expected performance was mainly due to faster-than-anticipated cost-cutting progress.”

Revenue increased by 1% compared to the average of the previous two quarters, mainly supported by a 0.4% growth in net interest income and a 5% increase in markets business income.

Thomas Strong pointed out that the markets business income of AUD 557 million was slightly below his expectations, indicating that ANZ’s core revenue growth actually performed slightly better.

There had been skepticism about whether Matos, a former HSBC executive who took office in May 2025, could achieve revenue growth targets while significantly cutting costs.

Customer deposits grew by 5% in three months to AUD 787 billion; net loans and advances grew by 1% over the same period, reaching AUD 837 billion.

Editor: He Yun