ANZ Group Holdings (ASX:ANZ) is expected to materially outperform on asset quality if a credit cycle happens, Jarden said in a Thursday note.

It logged AU$1.901 billion in cash profit for fiscal Q3, up 2% from a year ago. For the three months ended June 30, operating income was AU$5.607 billion, down 1%.

The bank is on track to integrate Suncorp (ASX:SUN), reduce duplication, and simplify its organization, with an increased fiscal 2026 gross cost-out target of AU$875 million while defending and leveraging leadership in institutional and New Zealand banking.

The investment firm maintained an overweight rating on ANZ while keeping the price target at AU$35.50.