ANZ cash profit jumps 31% to A$7.591 billion in 2026
Key Facts
ANZ Group reported on 9 November results for the financial year ended 30 September 2026, posting statutory profit of A$7.270 billion and cash profit of A$7.591 billion. Cash profit rose 31% from the previous year, the bank said. Excluding the impact of notable items recorded in fiscal 2025, the increase was 10%. Cash return on tangible equity also rose 109 basis points to 11.56%. The announcement came on the same trading day that the bank's shares fell 4.2% in afternoon trading, while the S&P/ASX 200 was unchanged, according to Reuters.
Investors' reaction reflects a divergence between annual profit growth and indicators of interest income. Net interest margin was 1.53%, compared with 1.55% in 2025. Net interest income in the second half was A$9 billion, about 2% below analysts' forecasts, according to Reuters. The news agency said the bank missed expectations for both net interest margin and net interest income, weighing on the stock. In morning trading, the shares were down 1.2% after giving up early gains, while bank stocks came under pressure, according to ABC.
Chief Executive Nuno Matos said competition for long-term capital from the renewable energy, defence and artificial intelligence sectors was contributing to a challenging funding environment, inflationary pressures and high interest rates. The comments come as the bank weighs revenue growth alongside ongoing funding-cost challenges. ANZ revenue rose 3% in fiscal 2026, according to the chief financial officer's remarks. Net interest income increased 3%, while non-interest income grew 6%. Markets revenue rose 1% to A$2.1 billion.
On shareholder returns, ANZ declared a final dividend of 83 Australian cents per share, with an imputation rate of 80%, compared with 75% in the first half. The full-year dividend was 166 cents per share. Statutory profit rose 23% to A$7.27 billion, according to ABC. The common equity tier 1 capital ratio was 11.99% at 30 September, down 4 basis points from its level on the corresponding date in 2025. The figures combine higher profit and dividends with a slight decline in the capital ratio from a year earlier.
Cost indicators showed productivity savings of A$902 million during the year, exceeding the A$875 million in gross cost savings the group cited in its half-year results. The cost-to-income ratio improved by more than 4 percentage points to 49.26%. But collective credit provisions rose to A$222 million, an increase of A$108 million from fiscal 2025. ANZ attributed the rise to portfolio growth and emerging risks amid higher interest rates and intensifying cost-of-living pressures on customers. Total credit impairment provisions were A$582 million, while the ratio of non-performing exposures to total credit exposure remained at 0.57% at 30 September, unchanged from the previous year.
On the Suncorp Bank integration, ANZ said the programme was 60% complete at the end of September 2026. It is targeting 85% completion by March 2027 and the completion of customer migration by June 2027. The group also completed 45% of its unified digital interface programme by the end of September 2026. The project aims to serve 7.7 million retail customers and more than 600,000 small-business customers by the end of September 2027. The bank estimated Australian economic growth at 1.6% next year, compared with a forecast of 1.1% for the current year. ANZ's financial calendar lists its annual general meeting in Perth on 17 December 2026 and payment of the final dividend on 18 December.