Target Price: $35.00 | May 05, 2025 Share Price used in analysis: $33.00

Investor Profile Snapshot

INCOME VALUE GROWTH QUALITY THEMATIC
★★★★★ 90% ★★★★ 80% ★★★ 65% ★★★★ 85% ★★★ 70%

Note: This report provides analysis and commentary based on public information and is not intended as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.

Latest Update - 1H FY2025 Key Takeaways

  • Net profit after tax (ex Notable Items) at $3,457m, down 1% year-on-year, showing resilience amid transformation costs
  • Business lending growing strongly at 14% and institutional lending at 15% year-on-year, significantly outpacing system
  • Net interest margin remained stable at 1.80%, demonstrating pricing discipline in competitive markets
  • UNITE transformation program in progress with 41 of 60 initiatives underway; expense-to-income ratio increased 195bps to 51.83%
  • Strong capital position maintained with CET1 ratio at 12.24%, supporting ongoing capital management initiatives
  • Deposit growth of 7% outpacing loan growth of 5%, improving deposit-to-loan ratio to 84.48%
  • Credit quality metrics remain sound with stressed exposures stable at 1.36% of TCE and impairment charges at just 6bps
  • Interim dividend increased 1% to 76 cents per share, representing a 75% payout ratio

What's Changed?