MELBOURNE, May 2, 2026, 06:12 AEST
- ANZ Group Holdings came in ahead of market forecasts for first-half cash profit, with CEO Nuno Matos driving more aggressive cost-cutting measures.
- Shares slid Friday as investors zeroed in on softer revenue trends and questioned the bank’s ability to capture more of the home-lending market.
ANZ Group Holdings delivered a better-than-expected first-half profit. Even so, shares slid as investors brushed aside cost reductions and provisions for bad debts, focusing instead on the slowdown in revenue growth.
ANZ, headquartered in Melbourne, posted a statutory profit of A$3.65 billion for the six months ended March 31. Cash profit—excluding non-core items—landed at A$3.78 billion. ANZ noted that, after removing significant items from the previous half, cash profit was up 14%.
This is the first comprehensive look at Matos’ turnaround efforts since he stepped in almost a year back. ANZ’s been working to streamline operations, slash duplication, and shore up returns, following a period when regulatory and conduct issues dragged on performance.
ANZ’s cash profit from continuing operations surpassed the Bloomberg survey average of A$3.69 billion, according to The Business Times. Morningstar’s Nathan Zaia called it “a solid start,” though he noted the bank must step up its game in home lending to become “more competitive.” The Business Times
ANZ dropped 2.8% on Friday, the hardest hit of the big four, while the ASX 200 edged up 0.7%. According to ABC News, investors focused on concerns over ANZ’s revenue growth prospects, questioning whether the bank can deliver more than just cost savings and reduced impairment charges.
UBS analyst John Storey called the result “strong,” according to ABC, citing lower costs and credit impairments that came in better than forecast. Still, he flagged “revenue trends did disappoint,” pointing to continued softness in net interest margins and volume. ABC News
ANZ trimmed its cost-to-income ratio to 49.4%, while cash return on tangible equity climbed to 11.6%. The lender’s Common Equity Tier 1 ratio—often watched as a capital buffer—reached 12.39% as of March 31, up from 12.03% at the end of September.
Matos described ANZ’s transformation as “running at pace.” The bank, he said, had boosted returns while tackling simplification and risk management. The board put forward an interim dividend: 83 Australian cents per share, with 75% franking, so eligible shareholders will get the associated Australian tax credits. ANZ
There’s a risk the profit boost could hinge too much on cost cuts. ANZ posted a net interest margin of 1.53% for the first half—just a basis point under the second half of 2025—and revenue missed analyst forecasts, according to The Edge.
Macro pressures aren’t letting up. ANZ took a A$126 million collective provision charge—essentially a buffer against future loan losses. Of that, A$175 million is tied to potential fallout from the Middle East conflict, though this was partially cushioned by solid underlying credit quality.
Matos warned investors the worst of the crisis hadn’t hit yet, flagging oil and key commodity flows from the Middle East as pivotal for what comes next. He maintained that ANZ’s base case is still no recession for Australia, but acknowledged things are shifting fast.
The outcome draws a line for National Australia Bank and Westpac—both have signaled bigger provisions and will post their first-half numbers next week, The Edge reported. As for ANZ, the bigger question now isn’t if Matos can trim expenses. It’s whether the bank can actually expand without sacrificing margin in Australia’s packed mortgage space.
