ANZ Group Holdings (ASX: ANZ) – ANZ 1H 2026 Results Investor Presentation

ANZ has delivered a 14% increase in cash profit to $3,780 million in the first half of 2026 on a constant currency basis, demonstrating progress on its transformation agenda as the bank executes cost reductions and integrates the Suncorp acquisition. The improvement reflects a narrowing cost-to-income ratio to 49.4 percent, down 519 basis points from the second half of 2025, alongside a return on tangible equity of 11.6 percent that has increased 161 basis points in the same period. Revenue remained flat on a constant currency basis at $11,204 million, suggesting the profit lift is driven primarily by operational efficiency rather than top-line expansion.

The cost reduction programme is central to ANZ’s strategy. Management has exited 78 percent of the 3,500 announced roles by April 2026 and realised $392 million in gross productivity savings through the first half, positioning the bank toward its target of $875 million in FY26 cost reductions. Suncorp Bank, acquired in August 2024, has contributed $55 million in synergies to date with an estimated $500 million in full run-rate cost synergies expected by FY29. These figures demonstrate the integration is tracking broadly on schedule, though investors should remain attentive to execution risks given the scale and complexity of combining two major banking operations.

Credit quality has remained resilient. The individual provision loss rate contracted to 101 basis points in 1H26 from 127 basis points in 2H25, and the collective provision coverage ratio reached 1.22 percent of credit risk weighted assets. Non-performing exposure ratios have continued to decline across home loans and consumer cards, suggesting the portfolio is benefiting from a resilient labour market and lower mortgage stress even as economic growth forecasts remain modest. The bank’s overlay approach to collective provisioning, which weights scenarios 52.5 percent to downside cases, reflects management’s preparedness for a slower macroeconomic environment should conditions deteriorate.

Capital management remains strong, with the CET1 ratio at 12.39 percent, up 36 basis points from September 2025. The interim dividend of 83 cents per share, partially franked at 75 percent, represents approximately 66 percent of cash net profit after tax on a dividend payout ratio basis. Management has ceased the remaining share buyback and redirected surplus capital to ANZ Bank Group Limited, prioritising balance sheet strength over shareholder returns in the near term.

The strategic priorities show uneven progress. The single customer front-end is 63 percent complete toward a September 2027 delivery to 8 million retail and small business customers, while Suncorp migration is 54 percent through. These timelines are ambitious given the technical complexity involved. Regulatory headwinds are building, with APRA signalling capital framework reforms in the second half of 2026 and RBNZ announcing revised capital requirements for New Zealand operations that take effect progressively from October 2026. Investors should monitor the outcome of APRA’s consultation on standardised capital frameworks, which could influence ANZ’s capital efficiency and return targets.

View the full ASX announcement (PDF)

About ANZ Group Holdings Limited (ASX: ANZ)

ANZ Group Holdings operates one of Australia’s four major banks, with a strong presence in retail and commercial banking across Australia, New Zealand, and parts of Asia-Pacific.

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