Highlights:

  • ANZ posts AUD 1.94b cash profit for 1Q26, up 75% versus 2H25 quarterly average.
  • Return on Tangible Equity rises to 11.7%, driven by lower expenses and improved revenue.
  • Customer deposits increase 5% quarter-on-quarter, supporting balance sheet stability.

ANZ Group Holdings Ltd (ASX:ANZ) shares Traded at AUD 40.34, reflecting gains for the day and positive movement over recent periods. The company has released its first quarter trading update for the period ended 31 December 2025, covering Statutory and Cash Profit. The report also provides details on revenue, expenses, capital, credit quality, and key balance sheet metrics for the quarter.

Share Performance Overview
ANZ shares Traded at AUD 40.34, reflecting an intraday gain of AUD 3.13 (+8.43%). Over the past month, the stock has risen 12.39%, while year-to-date growth stands at 10.75%. In the last six months, shares gained 26.32%, with a one-year and five-year performance of 29.23% and 63.93% respectively. The stock’s trajectory reflects strong investor interest following the release of ANZ’s 1Q26 financial results.

Broker Consensus Signals
According to Refinitiv data as of 12 Feb 2026, Analysts maintain a neutral view on ANZ Group Holdings Ltd (ASX:ANZ), assigning a HOLD rating. The consensus target price stands at AUD 36.35, implying a potential downside of about 9.8% from current levels. Expectations reflect ANZ’s steady long-term growth prospects (~12.7% LTG) amid a banking sector navigating economic uncertainty and market volatility.

Quarterly Financial Results
For the quarter ended 31 December 2025 (1Q26), ANZ reported an unaudited Statutory Profit of AUD 1.87b and Cash Profit of AUD 1.94b. The Cash Profit represents a 75% increase compared with the 2H25 quarterly average, and a 17% rise when excluding significant items from 2H25. Operating income rose to AUD 5.7b (+4% vs 2H25 quarterly average), while operating expenses decreased to AUD 2.8b (-21%).

Profit before provisions increased to AUD 2.9b (+52%), and the Cash Return on Tangible Equity (RoTE) climbed to 11.7%, up 505bps compared with 2H25. The cost-to-income ratio improved to 49.5%, down 1,593bps from the 2H25 quarterly average.

The Common Equity Tier 1 (CET1) ratio improved to 12.15%, up 12bps from September 2025. This increase reflects quarterly earnings and the return of surplus capital, including the cessation of the remaining AUD 800m share buyback, partially offset by the payment of the final 2025 dividend and credit risk weighted asset growth.

Revenue and Expense Dynamics
Revenue for the quarter increased 1% compared with the 2H25 quarterly average, supported by a 0.4% growth in net interest income and a 5% rise in other operating income, primarily from Markets activities which contributed AUD 557m.

Group Net Interest Margin (NIM) improved 2bps to 1.56%, with a 3bps increase excluding Markets. Operating expenses fell 8% quarter-on-quarter due to actions to reduce duplication and simplify operations.

Balance Sheet and Credit Quality
Customer deposits increased by AUD 39b, up 5% quarter-on-quarter, while net loans and advances rose by AUD 8b, a 1% increase, including AUD 5b growth in Institutional lending. Credit quality remained stable, with low portfolio losses and the 1Q26 Individual Provision (IP) charge at AUD 64m, AUD 20m lower than the 2H25 quarterly average, representing a 3bps annualized IP loss rate. \

The Collective Provision balance remained stable at AUD 4.38b, with coverage of 1.19% of credit risk-weighted assets. Australian Housing 90+ Days Past Due (DPD) and New Zealand Housing 90+ DPD were 81bps and 82bps, respectively, down from 86bps in September 2025. Non-performing exposures fell to 0.78% of total credit exposure, down 1bp from the previous quarter.

Capital, Funding, and Liquidity
ANZ’s liquidity ratios remained stable during 1Q26, with an average liquidity coverage ratio of 133% and a net stable funding ratio of 116%, both comfortably above regulatory minimums. Term wholesale debt issuance totaled AUD 11.2b from 1 October 2025 to date. The increase in CET1 ratio, along with stable funding and liquidity metrics, reflects disciplined capital management amid ongoing operational initiatives.

Strategic Progress
The bank continues to execute its ANZ 2030 strategy, embedding a new leadership team and driving cultural transformation. Integration of Suncorp Bank is progressing, with migration of customers expected to complete by June 2027.

Delivery of a single customer digital front-end is on track for all retail and SME customers by September 2027. Organizational simplification has resulted in more than 60% of the 3,500 announced roles being exited by end-December 2025. ANZ is also enhancing non-financial risk management as part of the Root Cause Remediation Plan.

ANZ Group Holdings delivered significant growth in Cash Profit in 1Q26, supported by reduced expenses, modest revenue gains, and improvements in capital efficiency and RoTE. The bank’s balance sheet remained stable, with increased deposits, moderate loan growth, and low credit losses. Progress under the ANZ 2030 strategy continues to shape operational simplification, digital delivery, and leadership alignment.

FAQs
Q1. What was ANZ’s cash profit for 1Q26?
Cash Profit stood at AUD 1.94b, up 75% versus 2H25 quarterly average.

Q2. How did the bank’s CET1 ratio change?
CET1 ratio improved to 12.15% as of 31 December 2025, up 12bps from September 2025.

Q3. What were key balance sheet movements?
Customer deposits rose 5% QoQ to AUD 787b, and net loans and advances increased 1% QoQ to AUD 837b.