ANZ targets 13% ROTE by 2030, announces cost cuts

ANZ Group Holdings aims to increase its Return on Tangible Equity (ROTE) from 10.3% (FY24) to 12% by FY28 and 13% by FY30, coupled with achieving a cost-to-income ratio in the mid-40s% by FY28. This strategy, announced on October 13, 2025, includes accelerating the integration of Suncorp Bank by June 2027, projecting annualised cost synergies of approximately A$500m by FY29. The bank also plans to complete the ANZ Plus digital front-end rollout to all 8 million Australian retail customers by September 2027.

ANZ expects to deliver A$800m in gross cost savings by FY26 through initiatives such as reducing 3,500 roles and 1,000 managed service contractors by September 2026. Non-core activities like Cashrewards and 1835i are being exited. To bolster its capital position, ANZ will cease the remaining A$800m of its share buy-back and apply a 1.5% discount on the next two Dividend Reinvestment Plans.

Key priorities include enhancing non-financial risk management, investing in proprietary channels, and expanding market share in Transaction Banking and credit cards. The bank will increase its commercial banker workforce by 50% and integrate Transactive Global for middle-market clients.