The ANZ Group Holdings Ltd (ASX: ANZ) share price is in focus as the bank posted a first-quarter cash profit of $1.94 billion and a statutory profit of $1.87 billion. Cash profit jumped 75% compared to the second-half 2025 quarterly average, driven largely by lower expenses and stronger revenue.
What did ANZ Group report?
- Cash profit for 1Q26: $1.94 billion, up 75% from 2H25 quarterly average
- Statutory profit: $1.87 billion for the quarter
- Operating income: $5.7 billion, up 4% on 2H25 quarterly average
- Operating expenses: $2.8 billion, down 21%
- Cash return on tangible equity (RoTE): 11.7%, up 173 basis points
- Common Equity Tier 1 (CET1) ratio: 12.15%, up 12 basis points
What else do investors need to know?
ANZ says its efficiency program is delivering results, with an 8% reduction in expenses helping to boost profit and bring the cost-to-income ratio under 50%. The bank saw growth in both customer deposits (up 5% to $787 billion) and lending (up 1% to $837 billion) over the quarter, supported by broad-based strength across divisions.
Credit quality remains sound overall, with low portfolio losses and a slight improvement in past-due housing loans in both Australia and New Zealand. The bank completed more than 60% of planned role exits as part of its simplification push, and reported stable liquidity and capital positions.
What did ANZ Group management say?
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.
What’s next for ANZ Group?
ANZ is pressing ahead with its ANZ 2030 strategy, which focuses on simplifying operations, embedding its new executive team, and integrating Suncorp Group Ltd (ASX: SUN). The migration of Suncorp Bank customers to ANZ platforms is on track for completion by June 2027.
The bank reiterated its FY26 cost guidance and expects further gains from process improvements and digital upgradesâaiming to deliver a single digital front-end for all retail and SME customers by September 2027.
ANZ Group share price snapshot
Over the 12 months, ANZ shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
The post ANZ Group posts $1.94b cash profit as costs drop in 1Q26 appeared first on The Motley Fool Australia.
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