Brokers continue to dominate Australia and New Zealand Banking Group (ANZ) distribution.
The major bank revealed on Friday that its home loan book grew by 3.6%, or $12 billion, year-over-year, during the first half of its financial year, or the six months ending the 31 March. Brokers wrote 69% of those loans, up from 67% a year ago, during the first half.
Proprietary lending made up 31% of the portfolio, down from 33%, a year ago, despite ANZ's Chief Executive Officer Nuno Mato's five-year growth strategy, ANZ 2030, which were revealed last October and focused on expanding its in-house mortgage originations and strengthening the proprietary channel.
Cash profits also rose, up 14%, year-over-year, excluding some items, to $3.78 billion. Statutory profit for the same period reached $3.65 billion. Cash return on tangible equity rose 161 basis points to 11.6%, while the cost-to-income ratio improved to 49.4%.
ANZ’s common equity tier 1 capital ratio stood at 12.39%, as of 31 March, up 36 basis points from September 2025. Customer deposits grew to $771 billion, a 3% increase, while net loans and advances edged down 1% to $822 billion.
The bank’s board proposed an interim dividend of 83 cents per share, with franking increasing from 70% to 75%, attributed to stronger performance in the Australian division.
Matos said the result reflected progress on the bank’s five immediate priorities under the ANZ 2030 strategy.
“Our transformation is running at pace, and we are making good progress in executing our five immediate priorities safely, sustainably and on time,” Matos said.
He noted that the bank’s Institutional and New Zealand divisions continued to perform well, while the transformation of Australia Retail and Business & Private Bank was underway. Lending volumes and deposits grew moderately during the period.
“While lending volumes and deposits grew moderately, active margin management meant margins remained stable for the half amid intense competition,” Matos said.
On the global economic environment, Matos pointed to the ongoing Middle East conflict as a source of uncertainty. The bank recorded a collective provision charge of $126 million for the half, which included a $175 million charge for the potential impacts of the conflict, partially offset by improvements in underlying portfolio credit quality. The collective provision balance rose to $4.45 billion.
“The longer the flow of oil is constrained, the greater the chance the crisis shifts from being primarily an inflation challenge, to much more a supply and growth challenge,” Matos said.
Despite the external pressures, Matos said ANZ had not seen any material increase in customers entering hardship.
“The result announced today confirms our actions to reset the bank are working, but we have more to do,” Matos said.
Of the 3,500 announced role reductions under the bank’s simplification program, 78% had been completed by the end of April 2026. The Suncorp Bank customer migration remains on track for completion by June 2027, according to the media release.
Kellie Ell contributed to this report.
