ANZ Soars and AMP Sinks: Earnings Breakdown

Core Insights - The February reporting season in Australia is underway, with major ASX-listed companies expected to report earnings that meet or exceed expectations, particularly in the financial sector [1][2][4] Financial Sector Performance - The financial sector is pivotal in shaping market sentiment, with the Commonwealth Bank's strong results setting a positive tone for the season [2][3] - ANZ Group reported a cash profit of $1.9 billion for Q1, with group revenue at $5.7 billion and a net interest margin increase of 3 basis points [7][9] - AMP Limited's FY25 results showed a statutory profit of $133 million, down 11.3% YoY, with a significant drop in share price following the announcement [13][16] ANZ Group Highlights - ANZ's performance was driven by effective cost management, with expenses below expectations and 60% of planned workforce reductions completed [8][10] - The bank's net interest margin improvement reflects favorable funding and pricing dynamics, consistent with trends across major banks [9] AMP Limited Highlights - AMP's overall profit was in line with expectations, but margins were softer due to strong growth in funds under management impacting average margin outcomes [14][16] - The bank's core profit declined by 10% to $55 million, influenced by higher digital investments, although net interest margins improved [18] Future Outlook - AMP provided margin targets for FY26, indicating modest pressure ahead, with limited scope for operating leverage without significant revenue changes [19][20] - The transition to new leadership at AMP raises questions about strategic direction, margin stabilization, and investment focus [21][22]