Sydney, Feb 5, 2026, 17:20 (AEDT) — After-hours
- ANZ ended the day 1.4% higher at A$37.58, outperforming the softer local market
- Big four banks announced variable mortgage rates will increase by 25 bps between Feb 13 and 17
- Traders are shifting focus to ANZ’s trading update on Feb 12 and upcoming cues from the RBA
ANZ Group Holdings Ltd (ASX:ANZ) shares closed Thursday up 1.38% at A$37.58, beating the weaker local market as investors zeroed in on Australia’s rate reset. The stock fluctuated between A$36.93 and A$37.68, closing above Wednesday’s A$37.07. (Intelligent Investor)
The S&P/ASX 200 slipped 0.5% to 8,880 points, weighed down by declines in materials and energy. Other sectors showed more resilience. Banks, meanwhile, stuck to their usual script—tracking interest rate moves even as the broader index shift stemmed from elsewhere. (ABC News)
The Reserve Bank of Australia lifted the cash rate by 25 basis points to 3.85% on Tuesday, marking its first increase in two years. Markets quickly recalibrated, pricing in further tightening before year-end. Governor Michele Bullock emphasized the board would be “actively monitoring” incoming data. Sally Auld, chief economist at National Australia Bank, dismissed the idea this was the “one-and-done” move, forecasting another hike in May. (Reuters)
The big four banks wasted no time in implementing the changes. Commonwealth Bank’s new variable home-loan rates kick in on Feb. 13, Westpac’s take effect Feb. 17, and both National Australia Bank and ANZ start theirs on Feb. 13. ANZ also noted it “continues to review other interest rates.” (Reuters)
Investors are focused on how margins will hold up as loan pricing climbs once more. Net interest margin — the gap between earnings on loans and funding costs — often widens with rising rates, but that edge can shrink if deposit expenses rise alongside.
ANZ’s upcoming key event is its first-quarter trading update set for Feb. 12. This report will offer insights into loan growth, deposit pricing, and early warning signs of household stress. It comes ahead of the period when higher mortgage rates begin to show up in customer repayments later in February. (ANZ)
The macro calendar remains active. Minutes from the RBA’s February meeting drop on Feb. 17, with the next policy decision set for March 17 at 2:30 p.m. AEDT. (Reserve Bank of Australia)
Offshore sentiment is also influential, especially as Australia edges its way off Wall Street’s lead. A tech-driven selloff in Asian markets, coupled with another steep drop in silver, left risk appetite uneven on Thursday, Reuters reported. (Reuters)
Shares in ANZ usually follow Commonwealth Bank, NAB, and Westpac when rate forecasts shift. They also track these peers closely as the market begins to factor in credit risk.
But the rate hike cuts both ways. If higher repayments hit harder than anticipated or unemployment ticks up, arrears and credit losses could surge. Bank stocks often reprice fast on those fears—long before the damage appears in earnings.
