ANZ Group Holdings Limited

ANZ said first-half FY26 cash profit after tax was $3.8 billion. Excluding significant items announced in the prior half, cash profit increased 14% and profit before provisions increased 12% half-on-half. Return on tangible equity rose 161 bps to 11.6%; CET1 improved 36 bps to 12.39%; and the cost-to-income ratio improved to 49.4% from 54.6%. Revenue was flat in the half, though on a constant-currency basis and excluding hedge benefit, group revenue increased 1%; Markets revenue was $1.1 billion, up 8% this half and 7% versus the prior first half on a constant-currency basis. The group took a collective provision charge of $126 million, individual provisions were $148 million, and the collective provision balance rose to $4.45 billion with coverage at 1.22%. The interim dividend was $0.83 per share with franking increased to 75%, and the interim DRP will be neutralized. Looking ahead, ANZ lifted FY26 cost guidance to down approximately 5% from the FY25 adjusted cost base of $11.85 billion, with productivity savings now expected at $875 million and an FX translation benefit of about $210 million if rates stay at first-half averages.

Nuno Matos framed the half as evidence that ANZ’s transformation is taking hold: the bank is simpler, more resilient, and delivering better shareholder outcomes. He emphasized that Phase 1 of ANZ 2030 is focused on getting the basics right, lifting productivity, and building the foundations for growth beyond 2027, with stronger customer propositions, better digital and human channels, and more disciplined pricing. His tone was confident but measured, repeatedly stressing that growth must be profitable and that the bank is prepared for a dynamic macro backdrop.

Farhan Faruqui highlighted progress across the core financial metrics: cash profit of $3.8 billion, ROTE of 11.6%, CET1 of 12.39%, and a 49.4% cost-to-income ratio. He said revenue was flat overall, but up 1% on a constant-currency basis excluding hedge benefit, while net interest margin exited March at 1.53% and management sees a bias to the upside in NIM ex Markets next half, helped by a further 7 bps of replicating-portfolio tailwind over 12 to 18 months. On expenses, he said 78% of the 3,500 FTE reductions had exited by April 30, more than 1,000 contractors were removed, productivity savings reached about $392 million in the first half, and FY26 cost guidance improved to down about 5% versus the FY25 adjusted base of $11.85 billion. He also said the dividend remains $0.83, franking moved to 75%, the interim DRP is neutralized, and the payout ratio is now 66%, broadly within the target range.

Analysts focused on capital sensitivity, mortgage growth and margins, the pace of cost savings, and how ANZ’s transformation programs are tracking. Management said that if the economy moved to its base case, they estimate about a $3 billion increase in RWAs over the next six months, equivalent to roughly 9 bps of capital, and noted they had stress-tested capital for a scenario of higher corporate borrowing. On mortgages, Nuno said ANZ is no longer trying to win growth by being the cheapest lender; instead it is using pricing tactically, improving processing times, upgrading distribution, and targeting profitable growth, with service levels now back at market SLAs. On costs, management clarified the new $875 million savings target does not bring forward FY27 savings or include Suncorp synergies, which are tracked separately. They also said the Suncorp migration and single customer front-end milestones remain on track, with clear percentage completion targets through FY27.