The ANZ Group Holdings Ltd (ASX: ANZ) share price is 2% higher after the ASX bank share reported its June 2026 quarter update.
ANZ is one of the largest ASX bank shares in Australia and New Zealand, primarily generating earnings from lending to households and businesses.
June 2026 quarter
ANZ revealed how it performed for the three months to June 2026.
It said that its operating income of $5.61 billion was flat compared to the FY26 first half quarterly average and it was down 1% year on year.
Operating expenses of $2.79 billion was 1% higher than the FY26 first half quarterly average, but 4% improved year on year.
Profit before provisions of $2.82 billion was flat compared to the FY26 first half quarterly average, but up 3% year on year.
ANZ’s provision charge for the quarter was $102 million – this was 26% better than the first half quarterly average, but 6% higher year on year.
The ASX bank share reported a cash profit of $1.9 billion for the quarter, representing a 1% rise compared to the FY26 first half quarterly average and a 2% rise year on year.
What drove these numbers?
ANZ noted that its net loans and advances rose 3% to $846 billion at June 2026 compared to March 2026, while customer deposits grew 2% to $786 billion. Excluding markets, customer deposits were flat and lending grew 2% including strong growth from its business and private bank.
The bank noted that excluding markets, net interest income grew 2% reflecting both volume growth and an increase in the net interest margin (NIM) – how much profit it makes from lending in percentage terms – offsetting a 2% reduction in other operating income.
Excluding markets, the group NIM increased by 4 basis points (0.04%), primarily benefiting from the capital and replicating portfolio.
While reported expenses increased, excluding the NZ$125 million provision for its New Zealand class action, underlying expenses decreased 3%, reflecting productivity benefits from a continued focus on simplifying the organisation and optimising third-party spending.
In terms of credit quality, ANZ said that the housing loan exposure more than 90 days overdue increased in its Australian portfolio to 86 basis points (0.86%), up from 83 basis points (0.83%) at March 2026. Hopefully that trend doesn’t continue.
Outlook for the ANZ share price
The bank said its goals are progressing well, which includes integrating (the acquired) Suncorp Bank faster to deliver value, accelerating the delivery of single-customer digital front-end, reducing duplication and simplify the organisation, and enhancing non-financial risk management to improve resilience.
If I were a shareholder, I’d be pleased with the slight rise in cash profit, though that’s not exactly a fast growth rate.
I wouldn’t choose to put new money into ANZ shares right now, with other ASX dividend shares looking more attractive, but I’d be satisfied with the ongoing growth if I owned shares as it makes another solid dividend likely with the FY26 result.
