SYDNEY, March 18, 2026, 11:35 (AEDT)
- ANZ slipped 2.3% to A$36.67 as of 11:08 a.m. AEDT, according to delayed market data. 1
- ANZ plans to raise its Australian variable home-loan rates by 0.25 percentage point starting March 27, which tacks on roughly A$80 per month to repayments for a A$500,000 owner-occupier loan. 2
- There’s also talk among investors about a possible ANZ move to acquire Worldline’s share in their $925 million payments joint venture. 3
Shares of ANZ Group Holdings Limited slipped Wednesday, despite the bank’s decision to push through the Reserve Bank of Australia’s recent rate hike to its borrowers. With delayed data, the stock was showing a 2.3% drop, trading at A$36.67 as of 11:08 a.m. AEDT. 1
The drop is notable—ANZ had just reached a record high of A$40.20 in February, buoyed by first-quarter profit gains and early traction on CEO Nuno Matos’ cost-cutting push. Now, shares sit nearly 9% off that top. Investors appear less interested in the immediate benefit from higher mortgage rates, and more focused on execution and deal risk. 4
The Reserve Bank of Australia lifted its cash rate to 4.1% on Tuesday, with the decision coming down to a narrow 5-4 vote—the closest call since it started releasing vote counts. “The domestic data flow alone justified a rate hike,” said Commonwealth Bank economist Belinda Allen. On the other hand, Westpac chief economist Luci Ellis saw less certainty for another move in May, which leaves bank investors eyeing margin gains but still unsure how much higher rates could climb. 5
ANZ will lift variable rates on its Australian home loans by 0.25 percentage point, effective March 27. Australia Retail executive Pedro Rodeia acknowledged the strain that higher home loan rates put on household budgets. ANZ figures the move tacks on roughly A$80 each month to repayments for a A$500,000 owner-occupier loan. 2
ANZ isn’t the only one moving. Commonwealth Bank, NAB, and Westpac each confirmed plans to raise variable mortgage rates following the RBA’s decision, so any profit boost from higher prices looks set to play out across the sector—not just for ANZ. 6
Payments could get interesting for ANZ. According to The Australian on Monday, the bank is edging closer to snapping up Worldline’s share in their merchant-payments joint venture. Worldline originally took the reins back in 2022, when the partnership was set up with a A$925 million price tag. 3
Regulation remains a moving target. On Monday, APRA outlined proposed tweaks to capital and liquidity standards, flagging stricter liquidity requirements for the biggest banks. The regulator described the overhaul as broadly cost neutral for the sector. Simon Birmingham, chief executive of the Australian Banking Association, backed the capital proposals but added that banks intend to press for rules that “minimise unnecessary regulatory burden and cost.” 7
Higher mortgage rates could hit as households feel the pinch. ANZ-Roy Morgan consumer confidence has dropped to levels not seen since March 2020. The RBA flagged that conflict in the Middle East might push inflation higher if oil prices rise, creating a challenging environment for borrowers—even if banks see fatter margins. 5
Back in mid-February, ANZ shares surged as much as 8.25% after the bank posted a first-quarter cash profit of A$1.94 billion. Citigroup’s Thomas Strong attributed the upside surprise mostly to cost-cutting that moved faster than expected. ANZ, which still sits at roughly 14% of Australia’s mortgage market, now faces the challenge of proving that lower expenses and higher rates can actually deliver more consistent gains from here. 4
