Australia and New Zealand Banking Group reported statutory profit of $3,631 million for the half year ended 31 March 2026, essentially flat year-on-year from $3,663 million in the March 2025 half. The result masks significant volatility across periods, with a 53% surge from the depressed $2,372 million September 2025 half when the bank took substantial restructuring charges. On a cash profit basis, which management considers the preferred measure of sustainable earnings, the Group grew by 5% year-on-year to $3,761 million, indicating underlying operational improvement despite multiple headwinds in the operating environment.
The flatness in statutory profit reflects several competing pressures in ANZ’s core banking operations. Net interest income declined to $8,871 million from $9,065 million six months earlier, driven by net interest margin compression of three basis points to 152 basis points year-on-year. The bank attributed the margin squeeze to impacts from its markets activities, intensifying competition across retail and institutional divisions, timing effects from RBA rate cycle changes, and deposit pricing pressure particularly in New Zealand and other lower-rate jurisdictions. These structural headwinds were partially offset by superior deposit growth relative to lending growth and strategic rebalancing within the liquid asset portfolio, both indicating improved funding dynamics.
Credit impairment charges increased to $277 million from $143 million in the March 2025 half, representing a 94% year-on-year increase. Management attributed the elevation primarily to collectively assessed provisions rising $140 million to address downside risks from escalating geopolitical tensions in the Middle East, organic portfolio growth, and revised forecasts for the RBA rate trajectory. The absolute charge level, while elevated, remains contained relative to the Group’s scale and capital position, reflecting a measured approach to risk provisioning.
ANZ’s capital position strengthened during the half. The Common Equity Tier 1 ratio improved 40 basis points from September 2025 to 12.4%, remaining above regulatory minima. The leverage ratio stood at 4.5%, maintaining headroom above the 3.5% requirement for internally rated banks. Liquidity metrics proved robust, with both the Liquidity Coverage Ratio at 132% and Net Stable Funding Ratio at 115% substantially above regulatory thresholds. The company proposed an interim dividend of $2,502 million payable July 2026.
The results reveal a systemic bank managing earnings in a pressured operating environment, contending with persistent margin compression and elevated credit costs. Deposit growth exceeding lending growth represents a structural positive for funding stability. Capital and liquidity ratios provide management flexibility to navigate near-term challenges. Investors should focus on the trajectory of net interest margins in coming quarters, the evolution of credit charges as economic and geopolitical conditions develop, and management commentary on pricing power and competitive intensity in Australian banking.
A rules-based approach to leveraged ETFs
See how our quantitative strategy works and who it suits.
Explore the strategyBecome an authorised representative
Advise your clients under an established AFSL without building your own. Choose AR or CAR.
Become an AR or CARView 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.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
Learn to trade with a plan
Our free 5-day course covers entries, exits and risk management.
Start the free courseBecome an authorised representative
Advise your clients under an established AFSL without building your own. Choose AR or CAR.
Become an AR or CAR