ANZ Group Holdings released its Q3 2026 trading update, posting a statutory profit of $1.95 billion and cash profit of $1.90 billion for the quarter ended 30 June 2026. While headline cash profit rose 1% against the first half quarterly average, the result was materially dampened by a $103 million pre-tax provision ($74 million post-tax) relating to a New Zealand class action ruling on lending costs. Excluding this provision, cash profit would have increased 5%, which better reflects the bank’s underlying operational momentum.
The RoTE (Return on Tangible Equity) came in at 11.54%, broadly flat compared to the 1H26 quarterly average, which underscores the headwind from the NZ provision. On an underlying basis, before the provision impact, the bank continues to track towards its full-year RoTE target. The bank’s capital position strengthened during the quarter, with the CET1 ratio rising 12 basis points to 12.51% from March 2026, providing room for capital deployment and demonstrating robust balance sheet management. Customer deposits and loan volumes remained stable, with the bank returning home lending to system growth, a positive signal for competitive positioning in the core mortgage market.
ANZ’s Chief Executive Officer Nuno Matos emphasized that the bank remains on track to meet both its RoTE and cost-to-income targets, with the latter holding steady at 49.39%. The cost-to-income ratio improvement reflects disciplined expense management, and the bank has reaffirmed its full-year cost guidance for 5% reduction year-on-year. This focus on productivity gains has translated into progress on several strategic fronts: the integration of Suncorp Bank is tracking towards a 57% completion target by year-end, and the rollout of the ANZ single customer platform is moving towards its 45% target. These initiatives address the bank’s medium-term priorities around simplification and margin improvement.
The NZ class action provision relates to a High Court ruling issued on 5 May 2026 under the Credit Contracts and Consumer Finance Act 2003. ANZ has appealed the decision, meaning this matter remains unresolved and represents downside risk if the appeal is unsuccessful. The quantum of the provision suggests the court’s assessment of potential borrower claims could extend beyond the current reserve if the group’s appeal fails. Investors should monitor the appeal process and any updates on this legal matter, as it could influence earnings momentum and capital requirements in coming quarters.
On balance, the quarter demonstrates ANZ executing on its stated strategy: productivity is improving, capital is building, and the bank is navigating a competitive environment while managing its cost base. The underlying 5% profit growth, once the NZ provision is backed out, shows sufficient momentum to support management’s full-year guidance. The key watch for investors in coming months will be the progress of the Suncorp integration, any updates on the NZ legal appeal, and whether the bank can sustain margin expansion without further provision charges. This announcement is price sensitive and has been flagged as material to the ASX.
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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