ANZ Group (ASX:ANZ)’s Q3 update demonstrated a combination of strong loan growth and solid credit quality, according to Morningstar analysts.

The financial analysts pointed out that lending volumes had grown above market levels, indicating a robust capital position for the company.

ANZ released a statement on Thursday, revealing that late mortgage repayments had ticked up slightly in the June quarter.

However, these levels remained below the historical average and the company reported increased customer deposits.

Analysts at the brokerage also noted that ANZ demonstrated stronger loan growth, suggesting that margins could be tightened by discounts and cash-back offers.

For the fiscal year 2023, Morningstar experts predict a net interest margin of 1.7% for ANZ, a figure below the estimated 10 basis points rise for the National Australia Bank.

Moreover, ANZ managed to grow its home loans significantly above market levels, gaining back some market share that it lost since 2019.

The group’s stock has seen an upward tick of 3.9% this year, as of the last close.

ANZ Group is a major multinational banking and financial services firm.