SKN | ANZ Strengthens Deposit Base as Business and Private Banking Lending Supports Profit Growth

Key Takeaways:

• ANZ Group Holdings reported third-quarter cash profit of A$1.9 billion for the three months ended June 30, with deposit growth supporting earnings.
• The bank expanded lending across its business and private banking division, helping offset weaker mortgage application values.
• Return on tangible equity reached 11.54%, giving management a key measure to improve as ANZ continues reshaping its earnings base.
• For HNWI clients, the more important signal is ANZ’s growing emphasis on deposits, business lending and private banking rather than residential mortgages alone.

ANZ Group Holdings is demonstrating a subtle shift in the composition of its banking business as stronger customer deposits and increased lending to businesses and private-banking clients helped lift third-quarter profitability. The Melbourne-based lender reported cash profit of A$1.9 billion for the three months ended June 30, according to the bank’s latest statement.

Why ANZ’s Deposit Growth Matters

The quarter highlights the importance of ANZ’s deposit franchise in an environment where traditional mortgage activity is proving less supportive. While the value of mortgage applications declined, customer deposits increased, providing the bank with a broader funding base and helping underpin earnings.

For a large banking institution, deposit growth is strategically important because it strengthens the relationship with customers while providing funding that can be deployed across different lending businesses. ANZ’s latest results therefore point to a more diversified earnings contribution rather than dependence on housing credit alone.

Business and Private Banking Take a Larger Role

The bank also expanded lending through its business and private banking division. That is particularly relevant from a wealth-management perspective because private banking connects lending, deposits and broader financial relationships with higher-value clients and business owners.

For entrepreneurs and affluent families, the significance extends beyond the headline profit number. A bank that continues developing its business and private-banking capabilities can deepen relationships across operating companies, personal assets, liquidity management and financing requirements. ANZ’s latest quarter suggests these areas are becoming increasingly important to the institution’s growth profile.

Return on Equity Remains the Strategic Measure

ANZ reported a return on tangible equity of 11.54%. The figure remains an important indicator of how effectively the bank converts its capital base into earnings, particularly as Chief Executive Officer Nuno Matos seeks to improve returns over time.

The challenge is therefore not simply to grow the balance sheet. ANZ must continue converting deposit growth and selective lending expansion into stronger returns while maintaining appropriate credit discipline and capital efficiency. For sophisticated banking clients, that distinction matters: balance-sheet growth is valuable only when it produces durable economic returns without materially weakening risk controls.

What ANZ’s Results Signal for Wealth Clients

The quarter provides a clearer picture of where ANZ is building resilience. Deposits, business lending and private banking are helping offset softer mortgage application activity, creating a more balanced banking model.

For HNWI clients evaluating international banking relationships, the development is worth monitoring because institutional strength increasingly depends on the breadth of services a bank can provide across personal wealth, businesses and financing needs. ANZ’s next priority will be demonstrating that this broader mix can translate into sustainably higher returns.

For a confidential discussion regarding cross-border banking structures, private banking relationships and international wealth-management considerations, contact our senior advisory team.