ANZ share price falls on Q1 update

ANZ had a decent quarter operationally but that hasn't been enough to stop its shares from falling today…

| More on:
A woman looks questioning as she puts a coin into a piggy bank.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ANZ Group Holdings Ltd (ASX: ANZ) share price has started the day in a subdued fashion.

At the time of writing, the banking giant's shares are down slightly to $25.70.

Why is the ANZ share price falling?

Investors have been selling down the ANZ share price today following broad weakness in the banking sector which appears to have overshadowed the release of the bank's first quarter update.

Although ANZ hasn't provided any earnings with its update, it has given the market an idea of how it is performing in FY 2023.

According to the release, during the three months ended 31 December, ANZ reported a $7 billion increase in Australian home net loans and advances (NLAs), an $11 billion lift in institutional NLAs, and broadly flat commercial and New Zealand NLAs.

Another positive was that all divisions reported increases in customer deposits, including increased flows into term deposits.

But an even bigger positive is that ANZ's credit quality has improved despite the cost of living crisis.

Gross impaired assets reduced 22% to $1.1 billion and 90+ days past due loans as a percentage of total portfolio balances have continued to reduce in aggregate. Levels also continue to remain extremely low relative to 2020 peaks.

ANZ's provisions were positive during the quarter, with the bank recording a $83 million total provision release. This reflects writebacks and recoveries exceeding new and increased individual provision charges.

All in all, this led to ANZ ending the period with a CET1 ratio of 12.2%.

Today's small decline won't be too disappointing for shareholders. The ANZ share price is still up almost 9% in 2023 despite today's softness.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Bank Shares

Why CBA shares could crash 40%+

Brokers are calling time on this banking giant's incredible run.

Read more »

Bank building with the word bank in gold.
Bank Shares

Guess which ASX 200 bank stock is down 4% after posting a quarterly profit decline

Let's see how this bank performed during the third quarter.

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
Bank Shares

How artificial intelligence could transform the banking industry

ANZ describes the move as “the single-biggest change program” the bank will undertake over the next few years.

Read more »

A man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth.
Bank Shares

5.75% yield: Are ANZ shares a dividend trap?

ANZ's dividend currently beats out its own term deposits.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Bank Shares

Here's the earnings forecast out to 2029 for CBA shares

How much earnings could CBA generate in the coming years?

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

CBA shares hit a new $176 record high. Too late to buy?

What can stop this bank now?

Read more »

man thinking about whether to invest in bitcoin
Bank Shares

Is this the right time to invest in Westpac shares after the interest rate cut?

Should investors bank on rate cuts helping Westpac?

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Bank Shares

How did ASX bank shares react to the RBA decision?

The Reserve Bank of Australia just reduced interest rates by 0.25% in the second cut for 2025.

Read more »