ANZ Group Holdings' (ASX:ANZ, NZE:ANZ) fiscal first-quarter results were bolstered by stronger revenue performance, and expenses were below the analysts' forecasts, Jefferies said in a note on Thursday.

The bank reported fiscal first-quarter cash profit of AU$1.94 billion, up 75% from the quarterly average of the second half of fiscal 2025. Revenue for the three months ended Dec. 31, 2025, rose 1%, with net interest income and other operating income rising 0.4% and 5%, respectively.

The bank's loan growth during the period was soft, but deposit growth was quite strong, Jefferies said, adding that how the bank manages its net interest margins when it gets back to system housing growth will be key for it. The analysts believe it will be negative for margins, with their forecasts factoring in an around 3-basis-point decline each year out to fiscal 2028.

The investment firm maintained a hold rating on the bank and increased its price target to AU$34.55 from AU$33.

The bank's Australian shares surged 10% in recent Thursday trade, earlier hitting an all-time high, while its Kiwi shares climbed 9%, earlier reaching a record high.