ANZ has announced targets for return on equity and cost-to-income ratio, responding to analyst demands for greater transparency. During a five-year strategy briefing, CEO Nuno Matos outlined plans to boost the bank’s financial performance over the coming years. ANZ is one of Australia’s largest banks, providing a range of banking and financial products and services to retail, commercial, and institutional customers. The company operates across Australia, New Zealand, and the Asia Pacific region.
The bank aims to increase its return on tangible equity (ROTE) from 10.3 per cent in FY2024 to “towards” 12 per cent by FY28, and further to “towards” 13 per cent by FY30. In addition to targeting increased returns, ANZ is focused on improving its cost efficiency.
ANZ projects that its cost-to-income ratio will be in the “mid-40s” by FY28, and sustained at that level through FY30. This reduction is expected to be driven by annual gross cost savings of $800 million from simplification initiatives by FY26, as well as $500 million in synergies from the integration of Suncorp Bank by FY29.
Early questions during the briefing focused on obtaining more specific details regarding the practical implementation of these synergies. Matos indicated that there are “obvious” areas for rationalisation to reduce costs and achieve the stated financial targets.
