ANZ shares jump after $1.94bn profit boost as cost cuts land and ASX nears record

Sydney, Feb 12, 2026, 11:33 AEDT

• ANZ reported an unaudited first-quarter cash profit of A$1.94 billion, with expenses down and revenue ticking up.
• The stock surged 6.7% right out of the gate, while the ASX 200 posted a 0.4% gain as earnings dominated the session.
• AMP dropped 23.6%. Profit targets were hit, but the spotlight stayed on inflows, which left investors unimpressed.

ANZ Group reported an unaudited cash profit of A$1.94 billion for the quarter ending Dec. 31, driven in part by reduced costs. That’s a 17% jump from the previous half’s quarterly average, after stripping out significant items. Shares surged 6.7% at the open in Sydney. Cost discipline has been front and center for new CEO Nuno Matos in his first months. 1

The update poured fuel on the reporting-season rally, driving the S&P/ASX 200 right up near its record. Single names, though, have been volatile—minor misses are getting punished. Financials are shouldering most of the gains, while anything with questionable flows is taking a hit. 2

Timing is critical for ANZ. Investors are watching for signs the bank can boost returns, even as tough loan competition drags on. ANZ highlighted “ongoing global economic uncertainty” and cited the latest cash rate hike—credit quality and costs remain firmly in focus.

ANZ reported a statutory profit of A$1.87 billion for the quarter. The bank’s cash profit jumped 75% compared to the second half of 2025’s quarterly average, which had been dragged down by hefty one-off charges and gains. Strip those out, and cash profit showed a 17% lift. Cash return on tangible equity (RoTE) added 173 basis points, reaching 11.7%. “Our productivity program aimed at removing duplication and simplifying the bank is well underway,” Matos said. He also noted the cost-to-income ratio dipped below 50%. 3

Revenue edged up 1% compared with the second-half average, lifted by a 5% increase in markets income to A$557 million. Group net interest margin came in at 1.56%, up 2 basis points — that’s the difference between what the bank earns on loans and pays out on deposits.

From September to December, customer deposits climbed A$39 billion. Net loans and advances were up A$8 billion, with institutional lending accounting for A$5 billion of the increase. Expenses dropped 8% during the quarter, and ANZ left its full-year cost guidance steady.

ANZ reported its common equity tier 1 ratio ticked up 12 basis points, landing at 12.15%. For housing loans over 90 days in arrears, the numbers slipped to 81 basis points in Australia, 82 basis points in New Zealand.

The update jolted the open: ANZ surged 6.7% to A$39.70. On the other side, AMP tumbled 23.6% to A$1.33, and Temple & Webster shed 23.8%. LSEG data, cited by ABC, tracked those sharp moves. 4

ANZ releases its numbers just as Commonwealth Bank, the larger player, absorbs both a record half-year performance and a brisk share price surge this week. “The main highlight from this result from CBA has been the growth in the business bank and operational excellence across mortgages,” said Michael Haynes, investment analyst at Atlas Funds Management. 5

IAG shares rose Thursday after the insurer posted a 21% slide in first-half cash earnings, still outperforming market expectations. The company also rolled out a new A$200 million buyback. Chief executive Nick Hawkins pointed to “major hailstorms and severe weather events” in Queensland and northern New South Wales as drivers of heavy claims. 6

Origin Energy topped profit expectations thanks to a stronger performance from its electricity retail business, raising its full-year operating earnings forecast in the process. Miner South32 also came in ahead of estimates, buoyed by firmer commodity prices and the resumption of manganese production. Still, South32 cut aluminium output guidance for its Brazil unit—a sign that even as resources rally, not everything breaks the bulls’ way. 7 8

But costs are still pressing down. Should competition squeeze margins more, or if the recent cash-rate hike nudges unemployment higher, bad debts might jump and eat into those savings.

The Australian Financial Review’s Chanticleer column described the cost windfall as “stunning,” but pointed out there’s “one thing missing.” Investors, for their part, are still looking for details on what happens after the cuts. 9