ANZ Group Holdings Limited

ANZ said first-half FY26 cash profit after tax was $3.8 billion. Return on tangible equity was 11.6%, up 161 basis points, while CET1 rose to 12.39%, up 36 basis points from September. The cost-to-income ratio improved to 49.4% from 54.6% in the prior half, and total costs were down 9% half-on-half excluding significant items. Revenue was flat half-on-half, but on a constant-currency basis and excluding hedge benefit, group revenue rose 1%; net interest income was broadly flat and Markets revenue was $1.1 billion, up 8%. ANZ declared an interim dividend of $0.83 per share and increased franking to 75%. For FY26, management raised cost guidance to down approximately 5% from the $11.85 billion adjusted FY25 cost base, with productivity savings expected to be about $875 million. Management also said it sees a bias to the upside in NIM ex Markets in the next half, helped by a 7 basis point tailwind from the replicating portfolio over the next 12 to 18 months, though competition and term-deposit migration remain headwinds.

Nuno Matos framed the half as evidence that ANZ’s refresh is gaining traction, saying the bank is already more focused, simpler and more resilient, with materially improved value for shareholders. He emphasized that the strategy is a two-phase plan: fix the basics and improve productivity in FY26-27, then drive outperformance beyond 2027 through better customer experience, stronger channels and growth. His tone was constructive but cautious on the macro, noting that current geopolitical and commodity disruptions remain dynamic and could worsen if oil flows stay constrained.

Farhan Faruqui focused on the financial execution: $3.8 billion cash profit, 14% higher cash profit excluding prior-half significant items, 12% higher profit before provisions, and a 161 basis point rise in ROTE to 11.6%. He highlighted a 9% half-on-half reduction in operating expenses, a 49.4% cost-to-income ratio, $392 million of productivity in the first half, and a raised FY26 productivity target of $875 million, with costs now expected to be down about 5% for the year. On capital and liquidity, he pointed to CET1 at 12.39%, a 66% payout ratio, no discounted DRP for the interim dividend, and funding and liquidity metrics still well above regulatory minimums. He also detailed credit quality: individual provisions of $148 million, collective provisions of $126 million, and collective coverage of $4.45 billion, which he said is around $2.5 billion above base case and $65 million above downside.

Analysts pressed management on capital sensitivity, mortgage growth, margin outlook, cost guidance, Suncorp migration risk and whether a weaker economy could trigger higher corporate drawings. Farhan said a move to the base case would imply about a $3 billion increase in RWA over the next 6 months, roughly 9 basis points of capital, and stressed ANZ has already stress-tested for elevated corporate borrowing. On mortgages, Nuno said ANZ is not chasing growth for its own sake; it is shifting pricing, fixing underwriting and processing, improving broker and proprietary distribution, and using product levers such as the first homebuyer scheme to pursue profitable growth. On costs, management said the increased savings target to $875 million does not include bringing forward FY27 savings or Suncorp synergies, and both the Suncorp integration and single customer front end are being tracked against explicit completion milestones.