ANZ shares have jumped at the start of trade after the lender doubled the size of its share buyback program to $3 billion.

ANZ on Friday confirmed it would increase the $1.5 billion program first announced in December after receiving the first tranche of reinsurance proceeds from the sale of its Australian life insurance business.

ANZ shares rose as much as 3.2 per cent on the news and, at 1444 AEST, were still up 79 cents, or 2.8 per cent, at $28.64.

The increased buyback is the latest move by a lender that has over the past two years been offloading various non-core assets and reallocating capital.

“The progress of our transformation means we are able to return this surplus capital to shareholders while retaining appropriate flexibility to invest in our business and maintain unquestionably strong capital levels,” chief financial officer Michelle Jablko said.