Highlights

  • ANZ posts AUD 1.94b cash profit for 1Q26, up 75% from 2H FY25 quarterly average.
  • CBA’s independent review confirms sustained outcomes and ongoing improvements from the RAP.
  • Westpac issues AUD 1.5b Tier 2 subordinated notes to strengthen regulatory capital.

Australian banking stocks saw notable movements on 12 February 2026, driven by quarterly updates and regulatory announcements. ANZ, CBA, and Westpac reacted to profit results, independent reviews, and capital-raising initiatives. Market participants tracked these developments closely as investor sentiment responded across the ASX.

ANZ Group Holdings – 1Q26 Profit and Efficiency Updates
ANZ Group Holdings (ASX:ANZ) reported a cash profit of AUD 1.94b for 1Q26, marking a 75% increase compared with the 2H FY25 quarterly average. Excluding significant items, cash profit rose 17%, supported by higher revenue and lower operating expenses. Operating income increased 4% to AUD 5.7b, while operating expenses declined 21% to AUD 2.8b. The cost-to-income ratio dropped to 49.5%, and net interest margin improved slightly to 1.56%.

Customer deposits rose 5% to AUD 787b, while net loans and advances increased 1% to AUD 837b. Credit quality remained stable, with non-performing exposures at 0.78% and low provisioning requirements. The bank’s CET1 ratio improved 12 bps to 12.15%, while liquidity ratios stayed well above regulatory minimums.

Share Performance
ANZ shares traded at AUD 40.35 on 12 Feb, up 8.47% on the ASX.

Commonwealth Bank of Australia – Independent Review of RAP
Commonwealth Bank of Australia (ASX:CBA) announced findings from an independent review conducted by Promontory, confirming that outcomes from its Prudential Inquiry Remedial Action Plan (RAP) have been sustained. The review highlighted ongoing improvements in governance, risk, and customer practices, along with operational simplification and embedding of customer-centric processes. While challenges remain in evolving practices alongside the broader risk environment, leadership’s tone from the top continues to reinforce adherence to RAP measures.

Share Performance
Shares of CBA closed at AUD 178.74 on 12 Feb, up 5.41% on the ASX.

Westpac Banking - Tier 2 Subordinated Notes Issuance
Westpac Banking Corp (ASX:WBC) issued AUD 1.5b Fixed Rate to Floating Rate Callable Subordinated Notes due 2041 under its Debt Issuance Programme. The notes are intended to raise Tier 2 regulatory capital, carrying a fixed coupon of 6.085% p.a. until 12 Feb 2036, after which the rate converts to BBSW +1.33% p.a.

The notes include conversion or write-off options if a Non-Viability Trigger Event occurs, with a maximum conversion of 1,280.0819 ordinary shares per AUD 10,000 note. Proceeds are for general corporate purposes, with minimal impact on the total capital ratio, expected to rise less than 0.4% on a Level 2 basis.

Share Performanc
Westpac shares rose 1.81% to AUD 41.00 on 12 Feb on the ASX..

Banking stocks on the ASX showed notable movements on 12 Feb 2026. ANZ’s efficiency and profit updates drove the largest share gain, while CBA’s independent review confirmed sustained RAP outcomes. Westpac’s subordinated note issuance contributed to a modest price increase. Market participants tracked regulatory developments and operational results as key drivers of investor sentiment.

With banking sector updates and regulatory developments impacting share prices, market participants are observing how ANZ, CBA, and WBC execute growth, risk, and capital strategies. ANZ’s efficiency measures, CBA’s RAP progress, and WBC’s Tier 2 issuance highlight the trading dynamics in Australia’s banking sector.

FAQs

Q1. How did ANZ shares perform on 12 Feb 2026?
ANZ shares rose 8.47% to AUD 40.35 following 1Q26 cash profit and efficiency updates.

Q2. What were the key findings from CBA’s RAP review?
The independent review confirmed sustained outcomes, improved governance, operational simplification, and customer-centric processes.

Q3. What is the purpose of WBC’s Tier 2 subordinated notes?
The notes raise Tier 2 regulatory capital, with conversion or write-off features in case of non-viability, supporting capital diversity.