The share market is higher after bank stocks rallied on the back of ANZ’s solid profit result.

ANZ delivered a better-than-expect first half cash profit on Tuesday, a day after Westpac disappointed the market with a flat earnings result that triggered a sell-off among the bank stocks.

Investors have clamoured back into financial stocks, reversing yesterday’s losses, CommSec market analyst Steven Daghlian said.

“Yesterday the major banks were down more than one per cent and today all of those losses have been reversed,” he said.

“It has a lot to do with ANZ’s profit result. ANZ has managed to grow its revenue while keeping its expenses flat, an outcome Westpac wasn’t able to do.”

ANZ posted a five per cent lift in its half year profit to $3.7 billion, up on the four per cent rise analysts were expecting.

At 1200 AEST, shares in ANZ jumped 3.75 per cent, or $1.24.

Westpac was up eight cents, or 0.22 per cent, to $35.58, Commonwealth Bank gained $1.27 cents, or 1.44 per cent, to $89.28, and National Australia Bank added 30 cents, or 0.83 per cent, to $36.59.

The major miners were mixed with gains in iron ore, copper, oil and gas prices overnight and falls in precious metals, including gold.

Diversified miner BHP Billiton was down 51 cents to $32.84 while Rio Tinto added one cent to $59.91 and Fortescue Metals was up six cents to $2.51.

The Reserve Bank will announce whether or not it has dropped the official interest rate to a new record low at 1430 AEST.

The market is expecting the RBA to cut rates by a further 25 basis points to two per cent after last cutting it February.

KEY FACTS

* At 1200 AEST on Tuesday, the benchmark S&P/ASX200 index was up 43.2 points, or 0.74 per cent, at 5,870.7.

* The broader All Ordinaries index was up 40.8 points, or 0.7 per cent, at 5,856.7.

* On the ASX 24, the June share price index futures contract was 49 points higher at 5,855 with 17,645 contracts traded.

* National turnover was 589 million securities worth $1.87 billion.