The ANZ Group share price (ASX: ANZ) has fallen for the fourth consecutive day, down 6.65% since the start of the week as banks continue to come under some pressure. The stock fell 3.05% on the day, as Westpac, Commonwealth Bank, and National Australia Bank all saw shares fall upwards of 2%. For ANZ, the pullback comes as the company released it’s latest financial report (Q1 FY 2025), which whilst positive, were not overwhelmingly so.

ANZ reported an increase in customer deposits by 2% across its retail and commercial divisions. This was complemented by a 3% rise in institutional payments and cash management deposits. However, total institutional deposits excluding markets remained flat, primarily due to a fall in term deposits.

Moreover, ANZ disclosed a 4% growth in net loans and advances, largely driven by the institutional division, which is significant for the bank’s growth strategy. The residential mortgage portfolio saw a 1% increase, reflected as stable growth over the quarter, yet the rise in gross impaired assets (GIA) by $200 million to $1.9 billion may have impacted investor sentiment negatively. Furthermore, ANZ’s credit-risk-weighted assets (CRWA) marked $379.4 billion as of December 31st, an increase of $18.2 billion from the previous quarter.

Banks are some of those most influenced by the Reserve Bank of Australia’s recent interest rate cut of 0.25% on February 18, 2025, with markets pulling the sector in since the release.

Despite the recent pullback in share price, ANZ’s year-to-date performance remains positive, with a gain of 2.17% bringing the cumulative yearly gain to 4.77%. This, whilst positive, is itself significantly behind some of it’s competitors, with Westpac having seen 20.54% in gains, and and CBA an impressive 33% over the past 12 months.

 

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