ANZ Profit Plunges 14% After Massive Job Cuts and $721M Regulatory Hit

The Australian bank ANZ Group reported a sharp fall in its annual profits. Its full-year cash earnings dropped by 14%. The bank earned A$5.79 billion. This result was lower than market expectations.

A huge A$1.11 billion one-time charge mainly caused the drop. This charge covered two big costs. First, it paid for cutting about 3,500 staff positions. Second, it settled a large lawsuit with regulators.

Profitability also suffered from ongoing pressure. Strong competition for home loan customers squeezed lending margins. The bank’s key Net Interest Margin dropped slightly. CEO Nuno Matos continues to streamline the business. He aims to improve core operations and fix the bank’s risk culture after a turbulent year.