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ANZ HY Profit Drops; Defers Dividend

Australia And New Zealand Banking Group Ltd.(ANZ.AX,ANZBY.PK,ANZ) reported a profit after tax for the half year ended 31 March 2020 of A$1.55 billion, down 51% on the prior comparable period. The decline was driven primarily by credit impairment charges of $1.674 billion that included increased credit reserves for COVID-19 impacts of A$1.031 billion.

The valuation of investments in Asian associates was impaired by A$815 million, largely due to the impact COVID-19 is having in those markets.

Cash profit from continuing operations was A$1.41 billion, down 60% from the prior comparable period. Cash Earnings per Share decreased 60% to 50 cents.

ANZ's Common Equity Tier 1 Capital Ratio is 10.8% at 31 March 2020. Return on Equity decreased to 4.7%.

ANZ's board determined it will defer its decision on the 2020 Interim dividend until there is greater clarity regarding the economic impact of COVID-19.

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