ANZ Group Holdings Limited Analysis

Overview

ANZ traces its origins to the Bank of Australasia, which opened its first office in Sydney in 1835 having been originally established in the United Kingdom by Royal Charter that year. The bank established a Melbourne office in 1838, where ANZ's world headquarters is located today at 833 Collins Street, Melbourne.

ANZ presently operates in more than 32 markets across Australia, New Zealand, Asia, Pacific, Europe, America and the Middle East. It provides a wide range of products and services, principally comprising banking, financial markets and other financial products and services for retail (personal and private bank) and business (small and medium business, corporate and institutional) customers. ANZ’s main business divisions comprise Australia Retail (servicing retail customers across Australia), Commercial (servicing business and private banking customers across Australia), Institutional (servicing global institutional and business customers across multiple markets) and New Zealand (servicing retail and commercial/business customers across New Zealand).

Performance

The following information was extracted from ANZ Group Holdings Limited's trading update, released 12 February 2026:

2026 First Quarter Trading Update

ANZ today announced an unaudited Statutory Profit for the quarter ended 31 December 2025 (1Q26) of $1.87 billion and a Cash Profit of $1.94 billion.

Cash Profit was up 75% on the quarterly average of the second half of the financial year ended 30 September 2025 (2H25 qtr avg), with 2H25 impacted by significant items. Excluding the impact of these significant items, Cash Profit was up 17% driven by a significant reduction in expenses and an improvement in revenue and Cash Return on Tangible Equity (RoTE) was up 173 basis points (bps) to 11.7%.

ANZ’s Common Equity Tier 1 (CET1) Ratio at 31 December 2025 was 12.15%, up 12 bps from 30 September 2025.

Overview of financial performance (1Q26 vs 2H25 quarterly average, excluding significant items)

• Revenue increased 1%, with 0.4% growth in net interest income and 5% growth in other operating income. Increase in other operating income was primarily from Markets, with total Markets income of $557 million, up 5%. Group Net Interest Margin (NIM) improved 2bps to 1.56%. Excluding Markets activities, Group NIM was up 3bps, primarily benefiting from favourable funding mix shift towards operational deposits and higher earnings on replicating portfolios, offsetting the impact of central bank rate reductions and asset competition.

• Customer deposits increased $39 billion, up 5% (31 December 2025 vs 30 September 2025). Excluding Markets, deposits were up $12 billion with growth across all divisions. Net loans and advances increased $8 billion, up 1% (31 December 2025 vs 30 September 2025), including Institutional lending up $5 billion.

• Delivered an 8% reduction in expenses in 1Q26, including from actions to reduce duplication and simplify the organisation. There is no change to the FY26 cost guidance provided at our FY25 results.

• Key financial metrics improved in 1Q26, with RoTE up 173bps, Revenue to average Risk Weighted Assets (RWA) up 14bps and the Cost-to-Income ratio down 505bps.