The ANZ Group Holdings Ltd (ASX: ANZ) share price is falling on Thursday.
In morning trade, the banking giant's shares are down 1% to $24.61.
This follows the release of the bank's third-quarter update.
What happened in the third quarter?
ANZ has not provided any financials for the three months ended 30 June. However, it has given the market an update on a number of other items.
For example, according to the release, ANZ finished the period with a CET1 ratio of 13.5% or 12.3% on a pro forma basis. ANZ's CET1 ratio excludes a ~56 basis points impact from its interim dividend that was paid in July.
Balance sheet
The bank reported continued growth in Retail and Institutional customer deposits for the three months. Though, Australia Commercial and New Zealand division deposits remained broadly flat.
ANZ's liability portfolio mix continued a shift towards higher interest rates, lower margins, savings accounts, and term deposits.
Australia Retail and Australia Commercial net loans and advances each grew 2% in the quarter, whereas the New Zealand division grew 1% and Institutional remained broadly flat.
ANZ also revealed that it recorded a total provision charge of $77 million for the quarter. This includes a $64 million individual provision charge and a $13 million collective provision. The latter leaves its collective provision balance stable at $4.04 billion, including 100% base case ($1.85b), Scenario and weights ($1.38b), and additional overlays ($0.81b).
Credit quality
Finally, the bank advised that its credit quality worsened slightly during the quarter. This could potentially be weighing on the ANZ share price today.
Gross impaired assets as a percentage of total gross loans and advances increased slightly from 17 basis points to 18 basis points.
And housing 90+ days past due (DPD) continued to trend upwards from recent lows, impacted by higher interest rates, inflation, and weather events in NZ. Australian Housing 90+ DPD rose 3 basis points to 63 basis points and New Zealand 90+ DPD rose 8 basis points to 53 basis points.
