MELBOURNE, May 3, 2026, 23:01 AEST
- ANZ Group Holdings posted a first-half cash profit of A$3.78 billion, keeping its interim dividend steady at 83 Australian cents per share, while franking was bumped up to 75%.
- Shares ended Friday down 2.84% at A$35.61, with investors digesting credit buffers, cost-cutting moves, and an ongoing risk overhaul that’s yet to wrap up.
- The numbers arrive ahead of earnings from National Australia Bank and Westpac, both set to report this week, and just before the Reserve Bank of Australia’s anticipated rate hike on May 5.
ANZ Group Holdings posted a profit increase, but that didn’t keep investors from dumping the stock. Lower costs and an unchanged dividend weren’t enough—concerns over credit risk, geopolitical turmoil, and CEO Nuno Matos’ ambitious overhaul took center stage instead.
Statutory profit at the Melbourne-based lender landed at A$3.65 billion for the six months ending March 31, with cash profit coming in slightly higher at A$3.78 billion. The cash figure, which leaves out non-core items, climbed 14% from the previous half—ANZ’s calculation excludes significant items for that comparison.
This comes as Australian banks hit a tougher stretch. Economists in a Reuters poll see the RBA lifting the cash rate to 4.35% on May 5. With oil supply disruptions stoking inflation, worries are mounting over household demand, arrears on loans, and what that means for bank margins.
Operating expenses at ANZ dropped 22% compared to the prior half, or 9% if you strip out significant items. That reduction pushed return on tangible equity up to 11.6%. Investors track return on tangible equity—profit relative to tangible capital—to judge how well the bank is putting capital to work.
The board is putting forward an interim dividend of 83 cents, with 75% franking—so just part of the payout comes with Australian tax credits. ANZ’s Common Equity Tier 1 ratio, the key regulatory capital gauge, increased by 36 basis points, now sitting at 12.39%. For reference, a basis point equals one one-hundredth of a percentage point.
“Transformation is running at pace,” Matos said, highlighting that margins have held steady even with tough competition in the mix. Institutional and New Zealand units, he added, are still delivering solid results. The overhaul in Australian retail and business banking remains ongoing.
ANZ’s Chief Financial Officer Farhan Faruqui said the bank had cut 78% of the 3,500 jobs it planned to eliminate by the end of April, and so far reached A$392 million toward its A$800 million full-year productivity goal. Now, Faruqui expects total productivity savings to come in higher, at around A$875 million for the year.
Investors hit the sell button. ANZ shares finished Friday at A$35.61, down 2.84%, Bloomberg data showed. Earlier in the session, the stock had climbed to A$37.11 before giving up gains.
Credit weighed most on the outcome. ANZ booked a A$126 million collective provision charge—A$175 million of that tied to potential fallout from the Middle East conflict. Collective provisions cover expected losses across loan books, not just loans already showing stress. Matos noted effects on ANZ’s credit, capital and liquidity remained minimal to this point, though he called the situation “dynamic.” ANZ
Other banks are running into similar problems. NAB flagged that first-half credit impairment charges will jump to A$706 million—double the prior level. Westpac pointed to fallout from the Middle East conflict and turbulence in energy markets as drivers of increased profit strain and bigger credit provisions. NAB is due to report Monday, with Westpac following on Tuesday.
ANZ’s New Zealand division offered some stability. The bank posted a cash net profit after tax of NZ$1.24 billion—2% higher than the previous half. Net loans grew 2%, while customer deposits climbed 4%. Antonia Watson, ANZ Bank New Zealand’s chief executive, flagged ongoing uncertainty in the economic outlook, pointing to Middle East tensions as a reminder that global shocks can swiftly disrupt a fragile recovery.
But it’s not just about bad debts here. Promontory, the independent reviewer brought in as part of ANZ’s court-enforceable deal with the Australian Prudential Regulation Authority, noted that ANZ’s risk remediation program is generally moving forward, yet remains in the early stages. The process still faces resourcing shortfalls, timing hurdles, and tougher tasks ahead. Promontory flagged the non-financial risk framework and processes workstream as red in its report.
Now comes the harder part for ANZ: trimming expenses further without compromising oversight. Matos has overhauled the Suncorp Bank integration timeline, eyeing a migration of Suncorp Bank customers to ANZ by June 2027. He’s also touting phase two of the ANZ 2030 strategy, saying it’s set to drive stronger growth once the initial clean-up wraps up.
