ANZ (ANZ) H1 2026 earnings summary

Executive summary

• Cash profit after tax rose 14% year-over-year to $3,780 million, with statutory profit at $3,650 million, reflecting strong operational performance, cost discipline, and customer-centric transformation.

• Return on tangible equity improved to 11.6%, up 161bps from the previous half, and cost-to-income ratio fell to 49.4%, down 519bps, with productivity and capital strength as key focus areas.

• Interim dividend of 83 cents per share, partially franked at 75%, with a payout ratio of ~66% on cash NPAT.

• Five immediate priorities are being executed: leadership and culture reset, Suncorp Bank migration, single customer front end, simplification and cost reduction, and financial risk management uplift.

• Transformation is on track, with tangible improvements in returns, efficiency, and shareholder value, while investing for future growth.

Financial highlights

• CET1 capital ratio increased to 12.39% at March 2026, up 36bps from September 2025.

• Cash profit after tax was $3.8 billion; excluding significant items, cash profit rose 14% and profit before provisions up 12% half-on-half.

• Cost-to-income ratio improved to 49.4%, down from 54.6% in the previous half.

• Net loans and advances grew 1% to $788b, and customer deposits rose 2% to $644b.

• Gross cost savings of $800m realized in FY26, with a target of $875m for the full year.

Outlook and guidance

• Cost reduction guidance for FY26 improved to a 5% decrease from FY25 baseline, with productivity savings target raised to $875 million.

• ROTE target of 12% by FY28 and 13% by FY30, with cost-to-income ratio expected in the mid-40s percent by FY28.

• Suncorp Bank integration on track for completion by June 2027, with $500m annual synergies expected by FY29.

• Investment in Suncorp integration and digital front end fully baked into cost outlook.

• Management expects continued focus on productivity and operational simplification.