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In its third quarter 2026 trading update, the bank reported that business and private bank loans rose 4 per cent over the quarter to $71 billion, up from $68 billion in March and 6 per cent from $67 billion a year earlier.
In its half-year results, Australia and New Zealand Banking Group’s (ANZ) total private and business loan book grew 2 per cent from $67 billion to $68 billion over the six months to 31 March 2026 and was 2.6 per cent higher than the $66.3 billion recorded in the same quarter a year earlier.
Within the division, SME banking increased from $25 billion in the June 2025 quarter (3Q25) to $26 billion in 3Q26, after remaining flat in 2Q26.
Diversified and specialised business lending rose from $37 billion in 3Q25 to $40 billion in 3Q26, while private banking remained at $5 billion in 3Q26 after rising from $4 billion a year earlier.
At Suncorp Bank, business lending remained broadly flat at $12 billion during the quarter. Its overall loan book fell 1 per cent from $74 billion in March to $73 billion in June and was 1 per cent lower than a year earlier.
Overall performance remains steady
ANZ reported a $1.90 billion cash profit in the three months to 30 June 2026, up 1 per cent on the quarterly average for 1H26 and 3 per cent year on year on a constant-currency basis.
Net loans and advances increased 3 per cent over the quarter to $846 billion, while customer deposits rose 2 per cent to $786 billion.
Operating income was $5.61 billion, up 2 per cent year on year, while profit before provisions rose 4 per cent to $2.82 billion.
The bank’s cost-to-income ratio was 49.66 per cent, up slightly on the first-half quarterly average, but 155 basis points lower than a year earlier.
Mortgage demand softens after budget
As reported by Broker Daily sister brand The Adviser, ANZ also revealed a post-budget decline in mortgage applications, although activity supported by the government’s 5 per cent Deposit Scheme helped offset some of the weakness.
ANZ’s underlying mortgage application values fell 12 per cent between the 12 May federal budget and the end of July, compared with 2Q26, excluding the impact of the Deposit Scheme. On a quarter-on-quarter basis, underlying application values were down 5 per cent.
Including applications supported by the scheme, however, mortgage application values were broadly unchanged from the previous quarter.
The figures reinforce the picture of weakening mortgage demand across the major banks following the budget. Westpac also reported a 20 per cent fall in mortgage applications since the budget, CBA recorded a 15 per cent decline, and NAB reported a 15 per cent drop in new-loan demand over three months.
ANZ looks to next phase
On reporting the results, ANZ CEO Nuno Matos said the bank remained focused on supporting customers while investing in the next stage of its strategy.
“We continue to watch the external environment closely across our network. Our balance sheet and capital position remain strong, and we are staying close to our customers should they need support,” he said.
At ANZ’s half-yearly results, Matos outlined that part of ANZ’s overarching strategy was an overhaul of its business bank, which would include upskilling business bankers, an improvement in tools, and the launch of an agentic AI-enabled capability in its CRM.
Looking further ahead, Matos said ANZ was investing in its customer experience, propositions, channels, and transaction banking capabilities.
“Beyond our immediate priorities, we are investing now in customer experience, propositions, channel uplift and transaction banking. This will position us well for the second phase of our strategy beyond 2027, to accelerate growth and outperform the market,” Matos said.
[Related: Business lending surges as CBA steps up AI]
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