Australia’s February reporting season is now firmly underway, with a steady cadence of results from major ASX-listed companies keeping investors and analysts closely attuned to earnings momentum across sectors.
According to the latest interim reporting calendar, we expect this period will see a significant portion of the ASX 200 including banks, insurers, and diversified financial services groups report above or around expectations and release performance updates over the coming days.
The financials sector has taken centre stage early in the season, reflecting its outsized influence on overall market sentiment and index performance. The reporting window opened with a marquee result from Australia’s largest bank, which set a positive tone for the season.
Commonwealth Bank (ASX: CBA) reported yesterday, unveiling a strong half-year result that underscored its market share gains across home loans, business lending and deposits—a performance that has supported renewed confidence in the domestic banking landscape.
Today, ANZ Group (ASX: ANZ) and AMP (ASX: AMP) have delivered their financial updates, providing further data points on profitability, margin dynamics and strategic execution across the financial services universe.
Together, these releases offer an early snapshot into how Australia’s financial institutions are navigating a complex backdrop of interest rate volatility, competitive pressures, cost discipline and evolving client behaviours.
As the calendar continues to unfold, focus will broaden to other major banks, insurers and diversified groups - with investors parsing earnings quality, guidance cues, and capital management priorities to inform positioning for the remainder of the year.
ANZ Group Holdings Limited - Q1 Financial
ANZ has reported a strong first-quarter result, delivering cash profit of $1.9 billion, ahead of the implied quarterly run rate.
Key Highlights:
- Group Revenue: $5.7 billion
- Markets Income: $557 million
- Net Interest Margin (ex-markets): +3 basis points
- Cost Performance: Below expectations
- Workforce Reduction: 60% of 3,500 FTE reductions completed (as at December)
Cost Discipline Driving Outperformance
The key driver of the stronger result was better-than-expected cost management, with expenses tracking below expectations for the quarter. Management confirmed that 60% of the planned 3,500 full-time equivalent role reductions had exited the business by December, demonstrating tangible progress on efficiency initiatives.
Margin Improvement
ANZ’s net interest margin (excluding markets) expanded by 3 basis points during the quarter. The improvement reflects favourable funding and pricing dynamics, consistent with broader trends seen across the major banks.
Group revenue came in at $5.7 billion, broadly in line with expectations. Markets income of $557 million was slightly softer, implying stronger underlying performance in the core banking divisions.
Outlook
Management reaffirmed its full-year cost guidance. With stable revenue trends, improving margins, and disciplined expense control, earnings expectations are likely to remain steady, with potential modest upgrades supported by asset quality trends.
AMP Limited - FY25 Financial Results
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AMP shares fell sharply following the release of its FY25 result, with the stock down approximately 27% after reporting a decline in full-year profit.
Key Financial Highlights
- Statutory Profit: $133 million (↓ 11.3% YoY)
- Platforms Core Profit: $106 million (↑ 9% YoY)
- AMP Bank Core Profit: $55 million (↓ 10% YoY)
Margin and Earnings Performance
While overall profit was broadly in line with expectations, margins were slightly softer than anticipated. The compression was largely attributed to strong growth in funds under management (AUM), with inflows moving through tiered fee structures and impacting average margin outcomes.
Segment Breakdown
Platforms
Core profit rose 9% to $106 million.
However, earnings were modestly below broader market expectations.
AMP Bank
Core profit declined 10% to $55 million.
Higher digital investment weighed on earnings.
Net interest margins improved, supported by stable credit quality.
FY26 Margin Targets and Cost Outlook
AMP provided inaugural margin targets for FY26, signalling modest pressure ahead:
- Platform Margins: 40-41 basis points
- Super & Investment Margins: 60–61 basis points
- Bank Net Interest Margin: 1.25-1.30%
- Controllable Costs: $630-$640 million
Updated margin guidance signals that earnings growth is likely to remain measured in the near term.
With platform margins guided to a relatively tight range, bank net interest margins expected to sit within a modest band, and super and investment margins reflecting ongoing competitive pressure, there appears limited scope for material operating leverage without a step-change in revenue mix or cost reduction.
In an environment where investors are increasingly focused on return on equity and capital efficiency, the absence of a clearly defined capital return strategy - whether through dividends or buybacks, may also weigh on sentiment.
Without surplus capital being actively deployed, the market will likely demand stronger organic earnings momentum to justify a re-rating.
The transition to new leadership adds another layer of scrutiny.
With a new CEO stepping into the role, the market’s focus will quickly shift to early strategic signals: how management intends to stabilise and expand margins, where incremental investment will be directed, and whether further simplification or restructuring is on the table.
Investors will also be closely assessing the durability of recent profit contributions from offshore operations, including China.
Questions around sustainability, regulatory settings, and earnings volatility in that segment could influence forward estimates. Ultimately, the near-term narrative will revolve around clarity of execution.
