ANZ Group Holdings Ltd saw its shares jump to an all-time high on Thursday after the lender disclosed first-quarter results that underscored the early impact of a broad cost-cutting program initiated by new chief executive Nuno Matos.
Shares advanced nearly 8% to a record A$40.140, a rise that contributed to a 0.6% uptick in the ASX 200 index. Investors responded to results showing that ANZ's first-quarter cash profit strengthened and that the bank successfully trimmed expenses while growing operating income.
For the three months to December 31, the bank recorded a cash profit of A$1.94 billion ($1.38 billion), up 6% compared with the same quarter a year earlier. Operating income for the period increased 3% year-on-year to A$5.7 billion, while total expenses fell 8%.
The reduction in costs reflects a broader restructuring program led by Matos. As part of that plan, ANZ has completed about 60% of a 3,500-person reduction in staffing through late-2025. Management described the staff cuts and other streamlining measures as components of an effort to simplify the bank and remove duplicated functions.
In commenting on the progress, Matos said: "Our productivity program aimed at removing duplication and simplifying the bank is well underway, delivering a significant reduction in expenses while growing revenue." He also reaffirmed the lender's focus on its "ANZ 2030" strategy as the bank seeks to recover from a period of regulatory restrictions and criticism of past management.
ANZ is positioned to capture some upside from monetary policy conditions after the Reserve Bank of Australia increased official interest rates by 25 basis points last week amid rising inflation. Higher local rates can support net interest income for banks, a dynamic that market participants factored into the share-price reaction.
Market reaction to the quarterly release was immediate and pronounced, reflected in the record share price and the boost to the ASX 200. The results show simultaneous top-line expansion and cost compression in the quarter, signaling early execution of the restructuring priorities set by the new leadership.