ANZ today announced [1] an unaudited Statutory Profit for the quarter ended 31 December 2025 (1Q26) of $1.87 billion and a Cash Profit of $1.94 billion.
Cash Profit was up 75% on the quarterly average of the second half of the financial year ended 30 September 2025 (2H25 qtr avg), with 2H25 impacted by significant items. Excluding the impact of these significant items, Cash Profit was up 17% driven by a significant reduction in expenses and an improvement in revenue and Cash Return on Tangible Equity (RoTE) was up 173 basis points (bps) to 11.7%.
ANZ's Common Equity Tier 1 (CET1) Ratio at 31 December 2025 was 12.15%, up 12 bps from 30 September 2025.
Overview of financial performance
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CEO Commentary
ANZ Chief Executive Officer Nuno Matos said: "The quarterly result highlights the early progress we are making in executing our ANZ 2030 strategy.
"Our productivity program aimed at removing duplication and simplifying the bank is well underway, delivering a significant reduction in expenses while growing revenue. There was an improvement across our key financial metrics, including the return on tangible equity which rose to 11.7% and cost to income ratio to below 50%.
"Looking ahead, we continue to be fully engaged in executing our ANZ 2030 strategy. This is the beginning of our five-year journey to become the best bank for customers and shareholders in Australia and New Zealand," Mr Matos concluded.
Progress under ANZ 2030 strategy
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Overview of financial performance (1Q26 vs 2H25 quarterly average, excluding significant items)
- Revenue increased 1%, with 0.4% growth in net interest income and 5% growth in other operating income. Increase in other operating income was primarily from Markets, with total Markets income of $557 million, up 5%. Group Net Interest Margin (NIM) improved 2bps to 1.56%. Excluding Markets activities, Group NIM was up 3bps, primarily benefiting from favourable funding mix shift towards operational deposits and higher earnings on replicating portfolios, offsetting the impact of central bank rate reductions and asset competition.
- Customer deposits increased $39 billion, up 5% (31 December 2025 vs 30 September 2025). Excluding Markets, deposits were up $12 billion with growth across all divisions. Net loans and advances increased $8 billion, up 1% (31 December 2025 vs 30 September 2025), including Institutional lending up $5 billion.
- Delivered an 8% reduction in expenses in 1Q26, including from actions to reduce duplication and simplify the organisation. There is no change to the FY26 cost guidance provided at our FY25 results.[1]
- Key financial metrics improved in 1Q26, with RoTE up 173bps, Revenue to average Risk Weighted Assets (RWA) up 14bps and the Cost-to-Income ratio down 505bps.
Credit quality
- Portfolio losses remain low, reflecting strong overall credit quality and customer resilience under relatively lower interest rates and unemployment. We remain cautious on the outlook, given ongoing global economic uncertainty and the recent increase in the cash rate.
- The 1Q26 Individual provision (IP) charge was $64 million, $20 million lower than the 2H25 quarterly average, and represents a 3bps annualised IP loss rate (2H25 4bps annualised IP loss rate).
- The Collective Provision balance remained stable at $4.38 billion with a Collective Provision balance to credit Risk Weighted Assets coverage ratio of 1.19%, up 1bp from 30 September 2025.
- Australian Housing 90+ Days Past Due (DPD) was 81bps and NZ Housing 90+ DPD was 82bps at 31 December 2025 (both 86bps at 30 September 2025).
- Non-performing exposures to total credit exposure was 0.78% at 31 December 2025, down 1bp from 30 September 2025.
Capital, funding and liquidity
- Level 2 CET1 capital ratio for Australia and New Zealand Banking Group Limited (ANZBGL and, together with its subsidiaries, ANZBGL Group) was 12.15% at 31 December 2025. The increase of 12bps from 30 September 2025 largely reflects quarterly earnings and the return of surplus capital to ANZBGL, including capital from ceasing the remaining ~$800 million of the share buy-back as announced in October 2025. These were partly offset by capital usage in 1Q26, including the payment of the final 2025 dividend and underlying credit risk weighted asset growth.
- Liquidity ratios remained broadly stable in 1Q26, with the average liquidity coverage ratio of 133% and a net stable funding ratio of 116% at 31 December 2025, both remaining well above regulatory minimums.
- $11.2 billion of term wholesale debt was issued across the ANZBGL Group from 1 October 2025 to date.
Further detail on key financial metrics, credit quality, capital and balance sheet, including drivers in 1Q26 are provided in ANZ's 2026 First Quarter Trading Update and Pillar 3 Discussion Pack.
