Key Highlights

• Cash profit of $1.90 billion was up 1% on the 1H26 quarterly average.

• In the June quarter, Markets income was $507 million, and the company noted NIM excluding Markets rose 4 basis points, against a 1 basis point rise for the group as a whole.

• ANZ reported cash profit of $3,780 million, up 70% on the second half of 2025, or up 14% excluding significant items in that earlier period.

• CET1 stood at 12.51% at 30 June 2026, up 12 basis points from 31 March 2026, and at 12.39% at 31 March, up from 12.03% at 30 September 2025.

What did ANZ Group Holdings Limited (ASX:ANZ) tell investors in its most recent quarterly update, and why does it matter ahead of the full-year result? In its third-quarter trading update, released on 13 August 2026 for the quarter ended 30 June 2026, the bank reported cash profit of $1.90 billion, a net interest Margin (NIM) of 1.54% and a Common Equity Tier 1 (CET1) ratio of 12.51%. Those three numbers frame a bank that is still working through a large restructuring while holding a comfortable Capital buffer, and they set the baseline for the annual results that follow the 30 September 2026 balance date.

The central development: steady Earnings with a one-off legal charge

The headline in the third-quarter update was resilience rather than acceleration. Cash profit of $1.90 billion was up 1% on the 1H26 quarterly average. Excluding a provision for a New Zealand class action, the company said it rose 5% to $1.98 billion. That provision was NZ$125 million pre-tax (A$103 million pre-tax, A$74 million post-tax) and followed a High Court ruling on 5 May 2026. ANZ has appealed, so the final cost remains uncertain and is an item to watch.

Statutory profit for the quarter was $1.95 billion (unaudited). Revenue was flat against the 1H26 quarterly average, and cash return on tangible equity (RoTE) was broadly flat. Management said it remains on track to meet its RoTE and cost-to-income targets, although the update gave no earnings or Dividend forecast.

Business model and what drives earnings

ANZ earns most of its income from net interest income, the spread between what it charges on loans and pays on deposits and wholesale funding, plus fees, markets trading income and, in New Zealand, a large retail and Business franchise. In the June quarter, Markets income was $507 million, and the company noted NIM excluding Markets rose 4 basis points, against a 1 basis point rise for the group as a whole.

Net interest income excluding Markets rose 2%, while other Operating Income fell 2%. On the balance sheet, customer deposits rose $15 billion (2%) between 31 March and 30 June 2026, though they were flat excluding Markets. Net loans and advances rose $24 billion (3%), or $12 billion (2%) excluding Markets, with the Business & Private Bank division up 4%.

Half-year results provide the larger picture

The half-year result for the six months to 31 March 2026 provides the fuller income-statement view. ANZ reported cash profit of $3,780 million, up 70% on the second half of 2025, or up 14% excluding significant items in that earlier period. Statutory profit was $3,650 million. Cash RoTE was 11.6%, up 161 basis points, and the cost-to-income ratio was 49.4%. The Interim Dividend was 83 cents per share, with franking rising from 70% to 75%.

Capital, funding and Credit quality

Capital is the most encouraging part of the story. CET1 stood at 12.51% at 30 June 2026, up 12 basis points from 31 March 2026, and at 12.39% at 31 March, up from 12.03% at 30 September 2025. The average Liquidity coverage ratio was 131% and the net stable funding ratio 113% for the June quarter.

Credit quality looked stable. The individual provision charge was $65 million, $9 million below the 1H26 quarterly average, an annualised loss rate of 3 basis points. The collective provision balance was $4.48 billion, up $26 million, equal to 1.20% of credit risk-weighted assets. In the half-year result, the collective charge included $175 million set aside for potential impacts from a Middle East conflict, which indicates management is still allowing for geopolitical risk. Non-performing exposures were 0.55% of total credit exposure, unchanged.

Arrears are worth monitoring: housing loans over 90 days past due were 86 basis points in Australia (83 at 31 March 2026) and 82 basis points in New Zealand (80 at 31 March 2026).

Restructuring and execution

ANZ's strategy, branded ANZ 2030, has five immediate priorities, including a cultural reset, the Suncorp Bank integration and a single customer front-end (SCFE). In the update, management targeted 57% completion of the Suncorp integration and 45% completion of the SCFE by the end of FY26. It also said 84% of 3,500 announced role reductions had been completed on a full-time-equivalent basis between 1 April 2025 and 30 June 2026.

Expenses rose 1% in the quarter but fell 3% excluding the New Zealand provision, and FY26 cost guidance is unchanged at a 5% fall year on year. Management says a second strategy phase, focused on customer experience and revenue growth, is planned beyond 2027.

Competitive position

ANZ competes in a concentrated market with Commonwealth Bank, Westpac and National Australia Bank, as well as smaller lenders and non-bank challengers. The Suncorp Bank Acquisition adds Queensland-centred retail and business banking, and the integration is where scale benefits are meant to emerge.

Risks and what to watch

- The New Zealand class action appeal, with a provision already booked but an ultimate outcome not yet known.

- Margin pressure from competition for deposits and mortgages, and the effect of any change in interest rates.

- Arrears trends in Australian and New Zealand home loans.

- Execution on the Suncorp integration and the single customer front-end, which carry both cost and operational risk.

- The Markets division, whose income can swing from quarter to quarter.

Upcoming developments

The next major event is ANZ's full-year result for the year ended 30 September 2026. Investors should look for the full-year NIM, CET1 ratio, cost outcome against the guided 5% reduction, and the status of the class action provision.