ANZ Follow-up: Capital Ratios Solid Amidst Asset Decline

ANZ reported a Common Equity Tier 1 (CET1) ratio of 12.0% as of September 30, 2025, an increase of 25 basis points since March 2025. This rise was primarily driven by cash profit, partially offset by significant items related to the Suncorp Bank acquisition goodwill and the 2025 interim dividend payment. Total risk-weighted assets (RWA) decreased by $8.5 billion to $458,547 million. This was mainly due to volume reduction in the institutional business and portfolio optimisation, counteracting lending growth in Australian retail and New Zealand divisions.

The Suncorp Bank acquisition on July 31, 2024, contributed to changes in RWA, with Suncorp Bank operating as a standardised ADI with credit RWA calculated based on APS 112. The RWA floor adjustment decreased by $8.6 billion over the half, primarily due to a reduction in the institutional portfolio. Meanwhile, the leverage ratio remained flat, with the group maintaining a 4.4% ratio, above the 3.5% minimum requirement. Liquidity metrics showed an average LCR of 132.07% and an NSFR of 114.56%, indicating stable funding and liquidity positions.