ANZ Shares Hit Record High After Strong Q1 Profit and Cost-Cutting Gains

ANZ Group shares surged to a record high on Thursday after the bank reported stronger-than-expected first-quarter results, driven by improved profitability and early gains from a major cost-cutting overhaul led by new CEO Nuno Matos. Investors responded positively as ANZ’s disciplined expense management and steady revenue growth signaled momentum in its strategic transformation.

For the three months ended December 31, ANZ posted cash profit of A$1.94 billion (US$1.38 billion), marking a 17% increase compared to the quarterly average of the second half of 2025. Statutory profit reached A$1.87 billion. The bank’s cash return on tangible equity rose 173 basis points to 11.7%, highlighting improved capital efficiency and earnings performance.

ANZ shares jumped as much as 7.9% in early trading to a record A$40.14 before settling at A$39.80 by 1142 GMT, significantly outperforming the broader S&P/ASX200 index, which gained 0.3%. Analysts noted the results exceeded expectations, with cash profit coming in 6% above Citigroup forecasts. Revenue for the quarter totaled A$5.7 billion, broadly in line with market estimates.

A key driver of the earnings beat was faster-than-expected cost reductions. Operating expenses fell 21% compared to the second-half quarterly average, contributing to an 8% quarterly decline in overall expenses. The bank’s cost-to-income ratio improved to 49.5%. Around 60% of the planned 3,500 staff reductions had been completed by the end of 2025 as part of a broader restructuring that includes contractor cuts and a A$560 million charge.

ANZ’s common equity tier 1 (CET1) ratio strengthened to 12.15%, reinforcing its capital position. Net interest margin edged up to 1.56%, supported by funding mix improvements despite competitive lending conditions and central bank rate cuts. Credit quality remained stable, with fewer Australian home loans 90+ days past due, signaling resilience across the banking sector.