Sydney, Feb 19, 2026, 16:56 AEDT — The market has closed.
- ANZ finished up, with buyers circling back to Australia’s major banks.
- Fresh wages and labor numbers kept rate expectations in the mix.
- Attention shifts to next week’s inflation data and the upcoming RBA meeting.
ANZ Group Holdings Ltd finished Thursday’s session 2.14% higher at A$40.07, with the big banks attracting buyers late in the week.
This is key: bank stocks make up a hefty share of Australia’s daily swings, and lately, the rate outlook’s gotten choppy again. Traders are picking apart what “higher for longer” might spell for lending margins and bad debt. The sector’s still testing record highs—whether that holds is the question.
ANZ tracked alongside the other majors. Westpac climbed 2.67% and National Australia Bank put on 2.42%, giving the sector a boost after a string of bank updates.
Banks rallied, lifting the S&P/ASX 200 close to new highs on Thursday. Investors kept an eye on the latest jobs numbers, hunting for policy signals. The broader market picked up a tailwind as a result.
NAB got things started the previous day, posting a 16% jump in first-quarter cash earnings and sending its shares to a fresh record high. The bank’s gains came off the back of higher business and home-lending volumes, despite fierce mortgage competition persisting.
Macro’s still in play. Australian wages climbed 0.8% in the December quarter, with yearly growth nudging up to 3.4%, according to Wednesday’s data. That’s enough to keep the Reserve Bank of Australia’s tightening stance on the table. After the RBA pushed rates up to 3.85% this month, markets were putting the odds of another hike in May at 60%, Reuters said.
No sign of a labour market breakdown here. Unemployment stuck at 4.1% in January, and jobs numbers actually climbed, according to the official data — a combination that doesn’t exactly support the idea inflation pressure is easing quickly.
ANZ, still riding momentum from last week’s quarterly, reset the clock on how quickly it might catch up to peers. The bank delivered A$1.94 billion in first-quarter cash profit and trimmed expenses by 8%—a result of thousands of job cuts as CEO Nuno Matos keeps the cost overhaul moving. “Our productivity program… is well underway,” Matos said. Citigroup’s Thomas Strong pointed to “faster than expected progress on costs” as the key factor behind the beat. Reuters
But the sector isn’t in the clear. Net interest margin, the main gauge for lending profits, looks vulnerable—especially if mortgage rivals ramp up price wars, or funding costs creep higher. Westpac, for one, put up a warning flag last week: its core margin slipped 3 basis points to 1.79%, despite steady credit quality.
For ANZ, focus shifts to whether buyers hang on to the banks in the next session—especially if the rate outlook moves. If not, there’s always the chance the market swings back toward miners and defensives.
Inflation is up next for markets this week. The Australian Bureau of Statistics drops its January CPI numbers at 11:30 a.m. AEDT on Feb. 25 — a data point that often jolts bank shares given its sway over the rate outlook.
Looking ahead, the Reserve Bank of Australia’s Monetary Policy Board is set to meet March 16–17, as shown on the central bank’s schedule. Investors are keen to see if there’s any hint that February’s rate hike stands alone, or marks the beginning of a more aggressive tightening cycle.
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