Australia and New Zealand Banking Group Limited (ASX: ANZ) has released its Consolidated Financial Report for the half year ended 31 Mar 2026, reporting statutory profit attributable to shareholders of A$3,631 million. The result was lodged with the Australian Securities Exchange and London Stock Exchange on 1 May 2026, and was approved by the Board of Directors on 30 Apr 2026.
Figure 1: ANZ Group Holdings corporate headquarters building [Courtesy: Shutterstock]
ANZ Group Holdings delivered a cash profit of A$3,761 million for the period ended 31 Mar 2026, up 5% from A$3,589 million in the March 2025 half and up 61% from A$2,342 million in the September 2025 half. The improvement was driven by lower operating expenses, higher other operating income, and a meaningful recovery from the prior half’s restructuring and settlement charges.
ANZ Half-Year Financial Results at a Glance
ANZ Group Holdings recorded operating income of A$11,061 million for the period ended 31 Mar 2026, essentially flat against A$11,153 million in the March 2025 half.
Net interest income came in at A$8,871 million, unchanged year on year, as growth in average interest-earning assets was offset by a 3 basis point decline in net interest margin from 155 basis points to 152 basis points.
Operating expenses fell to A$5,604 million, down 3% from A$5,788 million in the prior corresponding half. The reduction was driven by lower restructuring charges, reduced personnel costs from productivity initiatives, and lower technology expenses.
Restructuring costs in the March 2026 half were A$2 million, compared to A$83 million in the March 2025 half and A$681 million in the September 2025 half.
Income Statement Summary
Credit Impairment Charge Rises Sharply
ANZ Group Holdings recorded a credit impairment charge of A$277 million for the period ended 31 Mar 2026. This was up 94% from A$143 million in the March 2025 half, though marginally lower than the A$292 million charge in the September 2025 half.
The Company attributed the year-on-year increase in the collectively assessed credit impairment charge to heightened downside risks from the ongoing conflict in the Middle East, portfolio growth, and revised forecasts for cash rate trajectories.
The total allowance for expected credit losses on net loans and advances stood at A$3,897 million as on 31 Mar 2026.
Capital Position Remains Strong
ANZ Group Holdings reported an APRA Common Equity Tier 1 ratio of 12.4% as on 31 Mar 2026, up 36 basis points during the March 2026 half.
The improvement was supported by current period earnings and reinvestment of surplus capital. Total risk-weighted assets stood at A$464.0 billion. The APRA Leverage Ratio was 4.5%, above the 3.5% regulatory minimum.
The Liquidity Coverage Ratio averaged 132% for the March 2026 half, unchanged from the March 2025 half. Net Stable Funding Ratio stood at 115%, comfortably above the 100% regulatory minimum throughout the period.
Divisional Performance Across Seven Segments
ANZ Group Holdings operates seven divisions. The Institutional division was the largest contributor to cash profit, delivering A$1,347 million for the period ended 31 Mar 2026. Australia Retail contributed A$945 million, Business and Private Bank delivered A$698 million, and New Zealand added A$788 million.
Suncorp Bank contributed A$258 million. Group Centre recorded a cash loss of A$304 million, reflecting allocated costs and central function expenses.
Net loans and advances across the Group totalled A$822,252 million as on 31 Mar 2026. Growth was supported by home loan expansion in the Australia Retail division, up A$12.6 billion over the year, and business lending growth across the Business and Private Bank and Institutional divisions.
Balance Sheet and Funding
Total assets reached A$1,314,328 million as on 31 Mar 2026, up 1% from both the September 2025 and March 2025 positions.
Customer deposits grew to A$770.9 billion, up 2% from March 2025, while wholesale funding instruments declined 8% to A$252.2 billion as the Group continued to favour more stable deposit funding. During the March 2026 half, ANZ Group Holdings issued A$15.5 billion in term wholesale funding.
Derivative financial assets increased 37% year on year to A$67,911 million, primarily reflecting movements in the Australian dollar against major currencies. Total equity stood at A$71,350 million as on 31 Mar 2026.
Worldline Acquisition and Post-Balance Date Events
On 29 Apr 2026, ANZ Group Holdings announced a binding agreement to acquire Worldline S.A’s 51% share in Worldline Australia Pty Ltd.
This is the joint venture between the Group and Worldline S.A that commenced in 2022. The acquisition is subject to Australian Competition and Consumer Commission approval, with completion expected in the September 2026 half.
No other significant events were reported between 31 Mar 2026 and the date of signing of the report.
Dividend Declared for July 2026
ANZ Group Holdings paid a 2025 final dividend of A$2,407 million during the March 2026 half. The Directors have proposed a 2026 interim dividend of A$2,502 million, to be paid to ANZ BH Pty Ltd on 1 Jul 2026, with the final amount subject to the outcome of the ANZ Group Holdings Bonus Option Plan.
ANZ Share Price
Australia and New Zealand Banking Group Limited (ASX: ANZ) is currently trading at A$36.375 per share, with a market capitalisation of A$110.47 billion. The 52-week range stands at A$27.850 to A$41.000 per share.
Figure 2: ANZ Group Holdings (ASX: ANZ) share price performance over one year [Courtesy: ASX]
Industry Outlook
Australian banking is navigating a complex environment of moderating interest rates, persistent cost-of-living pressures, and heightened regulatory scrutiny.
Net interest margins across the sector face ongoing pressure as competition for both loans and deposits intensifies. Credit quality remains broadly stable, though rising impairment charges across major banks signal that the lagged effects of elevated rates are beginning to materialise in borrower performance.
The broader industry continues to invest in technology and digital banking infrastructure to defend against non-bank competition.
Future Direction and Impact on ANZ Investors
The March 2026 result demonstrates that ANZ Group Holdings has successfully reduced its cost base following the elevated restructuring charges of the September 2025 half. The 61% half-on-half recovery in cash profit is a clear signal of operational normalisation.
For investors, the key variables to monitor include the trajectory of the credit impairment charge, given the 94% year-on-year increase, and the Group’s progress against its APRA Court Enforceable Undertaking commitments.
The Worldline acquisition, pending regulatory clearance, adds a new growth angle in the payments space and reflects the Group’s strategy to capture more value from its transaction banking infrastructure.
The proposed interim dividend of A$2,502 million and a CET1 ratio of 12.4% suggest the capital position supports continued shareholder returns even as regulatory requirements evolve.
Frequently Asked Questions
Q1. What was ANZ Group Holdings’ cash profit for the March 2026 half?
Ans. ANZ Group Holdings reported cash profit of A$3,761 million for the half year ended 31 Mar 2026, up 5% from the March 2025 half and up 61% from the September 2025 half.
Q2. Why did the credit impairment charge increase so significantly?
Ans. The credit impairment charge rose 94% year on year to A$277 million, driven by collectively assessed provisions reflecting downside risks from Middle East conflict volatility, portfolio growth, and revised cash rate forecasts.
Q3. What is the ANZ Group Holdings interim dividend for 2026?
Ans. The Directors proposed a 2026 interim dividend of A$2,502 million, to be paid on 1 Jul 2026, subject to the outcome of the ANZ Group Holdings Bonus Option Plan.
Q4. What is the Worldline acquisition?
Ans. On 29 Apr 2026, ANZ Group Holdings entered a binding agreement to acquire Worldline S.A’s 51% stake in Worldline Australia Pty Ltd, a payments joint venture. Completion is targeted for the September 2026 half, pending ACCC approval.
Q5. What is ANZ Group Holdings’ CET1 capital ratio?
Ans. The APRA Common Equity Tier 1 ratio was 12.4% as on 31 Mar 2026, up 36 basis points during the half and above APRA’s minimum regulatory requirements.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on the Consolidated Financial Report released by Australia and New Zealand Banking Group Limited for the half year ended 31 Mar 2026, lodged with the ASX on 1 May 2026. Share price and market capitalisation data reflect figures provided at the time of publication. Investing in securities involves risk. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
Sources
https://www.anz.com/shareholder/centre/reporting/results-announcement/
https://www.asx.com.au/markets/company/ANZ
Last modified: May 1, 2026
