Sydney, Feb 24, 2026, 16:58 AEDT — The market is now closed.
- ANZ slipped 0.5% to close at A$39.57, following a session marked by sharp swings.
- The lender announced a A$1 billion subordinated note issue. It also said the former CEO ended legal proceedings—no payout involved.
- Attention now turns to funding costs and how banks are being valued, with ANZ’s half-year results coming up on May 7.
ANZ Group Holdings Ltd slipped 0.5% to finish at A$39.57 on Tuesday, moving within a range of A$39.18 to A$39.79 through the session. Around 2.15 million shares changed hands. (Investing.com)
The stock nudged higher after a governance cloud cleared. ANZ announced that Shayne Elliott, its ex-CEO, dropped his lawsuit challenging pay decisions. The bank said, “no payments or commitments were made to Mr Elliott with both parties bearing their own costs.” (ANZ)
There was fresh paper, too. ANZ announced plans to raise A$1 billion through subordinated notes maturing February 2037—A$725 million will be floating-rate, with another A$275 million issued as fixed-to-floating. The bank expects no material change to its financial position from the deal. Subordinated notes, which rank below senior bonds, help meet regulatory capital rules; they’d convert to ANZ shares only if APRA ruled the bank was otherwise non-viable. (api.nzx.com)
Not much of a push from the wider market either way. The S&P/ASX 200 in Australia closed almost unchanged, slipping 0.04% to 9,022. Early gains fizzled as traders got jittery about international swings and fresh trade policy news. (ABC News)
Banks have done the heavy lifting for the local index so far this February, but the straightforward gains look less likely from here. Both Macquarie and Morgan Stanley analysts point to sector valuations running hot—average major bank price-to-earnings now sits near 21 times. They still call out ANZ as the “value opportunity” among the big names, although they note the group faces short-term revenue challenges. (Market Index)
Under new CEO Nuno Matos, ANZ’s cost-cutting push has picked up steam. Fresh off a first-quarter update earlier this month, Matos said the bank’s drive to simplify operations and cut duplication is “well underway,” pointing to meaningful expense reductions with revenue still climbing. Citigroup’s Thomas Strong credited the profit surprise to quicker-than-expected progress on costs. But Jefferies’ Andrew Lyons flagged a looming challenge: whether ANZ can defend its net interest margin—the crucial gap between loan income and funding costs—as the bank returns to system housing growth. (Reuters)
Pay issues can erupt fast at Australian banks when regulatory trouble hits, as the Elliott dispute made clear. Back in December, after ANZ slashed bonuses amid a A$240 million civil penalty over systemic failures, Elliott fired back: “The bank and I had a clear, unambiguous agreement about the terms of my departure.” (Reuters)
Traders head into the week eyeing how ANZ’s latest subordinated deal might ripple into broader views on bank funding costs. The sector’s already priced for steady margins and easy credit, so any shift here could get noticed.
There’s also a more straightforward risk: Should credit losses rise or deposit competition get tougher than anticipated, earnings momentum could falter. Bank valuations are already lofty after a solid streak of results, so even minor letdowns have the potential to trigger a sharp de-rating.
ANZ’s next key event lands May 7, when it posts half-year results. After that, eyes turn to the interim dividend: ex-dividend hits May 18, that’s the last chance for buyers to snag the payout, and July 1 is when the dividend gets paid. (ANZ)
