ANZ Profit & Provision
ANZ Reports Solid Q3 Profit of $1.9 Billion Despite New Zealand Class Action Provision
Key Points
The NZ$125 million pre-tax provision followed a May New Zealand class-action ruling, which ANZ has appealed.
ANZ is the country’s fourth-largest home loan lender.
Cash profit for the quarter was $1.9 billion, in line with expectations and up 2% year over year.
ANZ has exited about 84% of the 3,500 announced roles and realized most of its FY26 cost savings, signaling tangible progress in its transformation.
Liquidity metrics remained robust, with liquidity coverage ratio and net stable funding ratio well above minimums, backed by nearly $29 billion in term wholesale issuance.
ANZ Group Holdings posted a third-quarter cash profit of $1.90 billion, up 2% from a year earlier, alongside a statutory profit of $1.95 billion, according to AFR and TipRanks. The results came in broadly in line with expectations, even as a NZ$125 million pre-tax legal provision — tied to a New Zealand class-action ruling — weighed on the bottom line.
CEO Nuno Matos said the bank's transformation program remains firmly on track. ANZ's CET1 ratio — a key measure of financial strength — rose to 12.51%, while deposits climbed 2% to $786 billion and net loans and advances grew 3% to $846 billion, per Kalkine.
NZ Class-Action Provision Clips an Otherwise Solid Quarter
A May ruling in a New Zealand class action forced ANZ to set aside NZ$125 million before tax. The bank has appealed the decision, per TipRanks. Without that charge, cash profit would have risen more and costs would have fallen — management said underlying efficiency gains were clearly visible once the provision is stripped out.
Operating income hit $5,607 million for the quarter, up sharply from the first-half quarterly average of $4,602 million, according to Kalkine. ANZ said liquidity remained robust, with nearly $29 billion in term wholesale funding issued and both its liquidity coverage ratio and net stable funding ratio sitting well above regulatory minimums.
Suncorp Integration and Cost Cuts Deliver Real Results
ANZ has now exited about 84% of the 3,500 roles it announced as part of its transformation program. Most of the targeted FY26 cost savings have already been realized, TipRanks reported. The rollout of a single digital front-end — part of the broader ANZ 2030 program — is also on schedule.
The integration of Suncorp Bank continues to progress, with management reiterating confidence in hitting return-on-equity and cost-to-income targets by FY26. CEO Matos framed the quarter as evidence that the transformation is delivering tangible results, not just promises.
Mortgage Applications Drop 12% After Property Tax Changes
ANZ is Australia's fourth-largest home loan lender, and the housing market is cooling fast. Mortgage applications fell roughly 12% following recent budget changes to property taxes, AFR reported. The drop reflects a broader pullback in housing-market activity as borrowers reassess their options.
Despite the slowdown, deposits and loan books both grew. The bank said it remains focused on growing both metrics while keeping costs in check. Management did not signal any change to its growth targets, even as the home-lending environment tightens.
Capital Position Strengthens as ANZ Eyes FY26 Targets
ANZ's CET1 ratio of 12.51% signals a well-capitalized bank with room to absorb shocks, according to Grafa. A CET1 ratio measures how much high-quality capital a bank holds against its risky assets — regulators require a minimum, and 12.51% sits comfortably above it.
With most cost savings banked and headcount reductions largely complete, ANZ says it is on track to outperform market expectations by FY26. The bank's next milestone will be demonstrating that its digital and efficiency investments translate into sustained profit growth — not just one strong quarter.
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