ANZ Bank Proposes Financial Targets for the Next Decade
ANZ, one of Australia’s leading financial institutions, recently communicated to its investors that they should not anticipate any significant upturn in revenue until 2028. This forecast was made during the announcement of its full-year results. The bank has set four ambitious financial targets to be achieved over the next decade. These objectives are expected to shape the bank’s financial outlook and performance in the coming years.
ANZ’s Four Hard Financial Targets
The bank’s outlined targets include the following:
- Increase return on tangible equity towards 12% by FY2028, and towards 13% by 2030.
- Achieve a cost to income ratio in the mid-40s per cent by FY2028 and sustained through to 2030.
- Estimated gross cost savings of $800 million to be delivered in FY2036.
- Estimated Suncorp Bank synergies of $500 million, with full run-rate synergies realised in FY2029.
These are robust targets, given where the bank stands currently. For example, ANZ’s cost to income ratio was 53.4% in FY2025, according to its own calculations, and 58.7% according to KPMG’s analysis of major banks’ results. Therefore, there is a significant journey ahead for the bank to achieve its proposed target.
ANZ’s Current Financial Situation
ANZ’s return on tangible equity in FY2025 was 10.5%. The bank recently announced a statutory net profit for the full year of $5.89 billion, a decline of 10% compared to the previous year. This reduction is largely attributed to significant items totalling $1.1 billion, announced on 31 October 2025, which included ASIC settlements and restructuring charges.
Path Ahead for ANZ
While the financial targets set by ANZ are ambitious, they highlight the bank’s commitment to achieving financial stability and growth over the next decade. Meeting these objectives will not only require strategic planning and execution but also the ability to adapt to changing market conditions and regulatory environments. Regardless, ANZ’s commitment to these targets sends a strong signal to its investors about the bank’s long-term financial prospects.
It is worth noting that while the path to these targets appears challenging, if achieved, they could significantly enhance ANZ’s financial position and investor confidence. Therefore, all eyes will be on ANZ over the next decade to see if it can turn its ambitious targets into reality.
For more detailed information on ANZ’s financial targets and results, click here.
