ANZ Group Holdings Ltd shares advanced 1.7% on Monday, closing at A$37.63, recovering from recent declines. The move comes ahead of the bank's scheduled first-quarter trading update on Thursday, February 12.
Investor Focus on Key Metrics
Market participants are keenly anticipating the upcoming report for insights into net interest margins, loan book expansion, and credit quality trends. The update arrives as Australian banks navigate a shifting monetary policy landscape.
Mortgage Repricing in Focus
ANZ confirmed it will raise variable interest rates on Australian home loans by 0.25 percentage points annually, effective February 13. This adjustment follows the latest policy move by the Reserve Bank of Australia. Other major lenders, including Westpac, are implementing similar changes with slightly different effective dates.
The broader Australian equity market also rebounded on Monday, supported by a positive risk sentiment across Asian exchanges. Regional gains were partly driven by strength in Japanese equities and a bounce in U.S. semiconductor stocks.
ANZ's near-term performance presents a complex picture. While higher benchmark rates can bolster lending revenue, they also increase financial pressure on borrowers, potentially leading to higher arrears if economic growth slows. The bank noted it continues to evaluate other interest rate products.
Economists point to persistent inflation risks, suggesting the potential for further monetary tightening by the RBA. Such actions could dampen household loan demand in subsequent quarters. Thursday's update will be scrutinized for early signals on customer reaction to the mortgage rate increase and competitive dynamics in deposit markets.
