ANZ (ANZ) investor relations material

Executive summary

• Cash profit for 3Q26 was $1.90 billion, up 1% from the 1H26 quarterly average, despite a significant NZD 125 million provision related to a New Zealand class action; excluding this provision, cash profit rose 5%.

• Statutory profit for 3Q26 was $1.95 billion, with productivity, margins, and business volumes improving, especially in business banking and home lending.

• The group continued to execute on its 2030 strategy, focusing on leadership, Suncorp Bank integration, digital transformation, cost reduction, and risk management.

• Five immediate priorities are progressing, including Suncorp Bank integration and digital front-end delivery.

Financial highlights

• Operating income for 3Q26 was $5,607 million, flat compared to the 1H26 quarterly average; net interest income (ex-Markets) rose 2%.

• Operating expenses were $2,785 million, up 1% from the 1H26 average, but down 4% year-over-year; excluding the NZD 125 million provision, expenses fell 3%.

• Group NIM improved 1 basis point to 1.54%; NIM ex markets up 4 basis points, driven by replicating portfolio earnings and improved deposit margins.

• Cost-to-income ratio was 49.66%, up 27bps sequentially but down 155bps year-over-year.

• Provision charge decreased 26% sequentially to $102 million.

Outlook and guidance

• Suncorp Bank integration is on track, with 45% of activities completed by June 2026 and 57% targeted by September 2026.

• Full-year cost guidance remains a 5% reduction year-over-year, absorbing the New Zealand provision.

• Replicating portfolio expected to remain a tailwind for NIM over the next 12 months, though at a moderating pace.

• Continued investment in customer experience and transaction banking to support long-term growth.

• Expect to grow at or around system credit growth in the second half of 2026.