ANZ (ANZ) H1 2026 earnings summary

Executive summary

• Statutory profit for 1H26 was $3,650m, up 62% vs 2H25 and flat year-over-year; cash profit rose 14% year-over-year to $3,780m, reflecting strong operational performance and cost discipline.

• Transformation initiatives are progressing, focusing on leadership/culture reset, simplification, cost reduction, and customer experience, with Suncorp Bank migration and single customer front end underway.

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

• Institutional and New Zealand divisions performed well; Australia Retail and Business & Private Bank transformation is ongoing.

• Focus remains on sustainable, profitable growth with disciplined margin and risk management.

Financial highlights

• Return on tangible equity increased by 161 bps to 11.6% compared to the previous half; cost-to-income ratio improved to 49.4%, down 519bps sequentially.

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

• Cash profit after tax was $3,780m, up 14% year-over-year; statutory profit was $3,650m.

• Gross cost savings of $800m realized in FY26, with a target of $875m for the full year; operating expenses fell 22% sequentially.

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

Outlook and guidance

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

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

• Estimated gross cost savings of $875m to be delivered in FY26.

• Management expects continued focus on productivity, operational simplification, and no material deviation in investment for Suncorp integration or customer front end projects.

• APRA and RBNZ regulatory changes on capital and liquidity are expected to impact capital structure and requirements.