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Highlights

  • ANZ share price falls 2.5% to $28.48 on Tuesday despite a broader market rally.

  • The decline is attributed to ANZ trading ex-dividend following a declared 83c interim payout.

  • The bank posted record revenue and profit growth in its 1H FY25 results, buoyed by the Suncorp acquisition.

Shares of ANZ Group Holdings Ltd (ASX:ANZ) fell sharply on Tuesday morning, dropping 2.5% to $28.48, in contrast to the S&P/ASX 200 Index (ASX: XJO) which climbed nearly 1% to an intraday high of 8,314 points, boosted by news of a temporary tariff agreement between the United States and China.

Despite the strong tailwinds pushing the broader market higher, ANZ shares bucked the trend as they began trading ex-dividend on Tuesday. 

Ex-Dividend Drag

ANZ recently declared an interim dividend of 83 cents per share, 70% franked, in its 1H FY25 earnings report. The dividend will be paid to eligible shareholders on 1 July 2025. With the stock now trading ex-dividend, investors buying shares from today onward will not receive this upcoming payout, leading to a natural price correction.

Eligible shareholders also have the option to reinvest their dividend under the company’s Dividend Reinvestment Plan (DRP), with elections due by 5:00 PM AEST on Thursday. The DRP share price will be determined based on the average volume-weighted average price (VWAP) between 19 May and 30 May 2025.

Financial Results Underscore Long-Term Appeal

ANZ’s dip comes despite the release of strong financial results for the six months ended 31 March 2025. Key highlights include:

  • Revenue up 5% from the prior half to a record $10.99 billion.

  • Cash profit rose 12% to $3.57 billion.

  • Statutory profit increased 16% to $3.64 billion.

  • Earnings per share (EPS) rose 13% to 120.1 cents.

This growth was significantly aided by the first full-half contribution from Suncorp Bank, which ANZ acquired in July 2024. 

Macroeconomic Boost Overshadowed by Timing

The broader market rally was spurred by positive news out of the U.S. and China, where both nations agreed to temporarily lower steep tariffs for 90 days. The U.S. has slashed its tariff on Chinese goods from 145% to 30%, while China has reciprocated by reducing its retaliatory tariff from 125% to 10%.

This de-escalation of trade tensions benefits Australia, given China is its largest trading partner and a slowdown in Chinese demand would directly affect key exports like iron ore.