S&P/ASX 200 falls 0.4% to 8,982 as bank stocks reverse
Key Facts
The S&P/ASX 200 fell 0.4% to 8,982 at 11:30 a.m. local time, erasing early gains in Monday’s session on November 9. The turn came as bank shares, including ANZ, declined while mining and uranium companies rose. The market opened lower despite a rebound in mining shares, according to the Australian Broadcasting Corporation. But at 10:50, the index was only one point above its previous close, at 9,022, and ANZ shares had reversed to a 1.2% decline.
The pressure on banks coincided with ANZ’s results for the financial year ended September 30, 2026, with statutory profit of A$7.270 billion. Cash profit was A$7.59 billion, about 1% above the forecast of one JPMorgan analyst, according to an assessment cited by the Australian Broadcasting Corporation. The assessment said lower-than-expected expenses were among the positive factors in the results. The bank said cash profit rose 10% after excluding the effect of notable items recorded in the previous financial year. Cash return on tangible equity also rose 109 basis points to 11.56%.
On revenue, the chief financial officer said ANZ’s total revenue rose 3% in financial year 2026, with similar growth excluding markets activity. Net interest income rose 3% year on year, while non-interest income increased 6%. He said profit growth reflected the performance of margins, capital, costs and business growth. The group’s net interest margin was stable in the second half of the financial year, while the margin excluding markets activity rose 2 basis points to 2.30%. By contrast, the annual net interest margin fell to 1.53%, affected by competition across most businesses and the timing of interest-rate changes, according to Reuters.
The bank declared a final dividend of 83 Australian cents per share, with 80% franked, bringing the total dividend for the financial year to 166 cents per share. Earnings per share were 253 Australian cents, up 30% year on year, according to the chief financial officer. But the earnings results did not prevent ANZ shares from turning lower in morning trading after opening higher. The bank’s credit-loss provisions rose to A$582 million, up A$141 million from the previous year. The bank attributed the collective provision to portfolio growth, interest-rate risks and the cost of living, according to the Australian Broadcasting Corporation.
In mining, uranium companies led gainers as the session progressed, with Deep Yellow shares up 8.3% and Paladin Energy shares up 6.4% at 11:30 a.m. Paladin had risen more than 5% earlier in the morning, according to coverage by the Australian Broadcasting Corporation. The sector’s performance followed a 0.5% decline in the index to 9,021 in the previous Friday’s session, while iron ore fell 0.7% to $92.40 a tonne. On monetary policy, the Reserve Bank of Australia raised its target interest rate by 0.25 percentage points to 4.85% on November 4, following increases on September 30 and May 6. This puts ANZ’s results and bank performance in the context of tighter monetary policy and competition for margins, factors the bank cited in explaining its net interest margin.
Attention in Australia is turning to NAB’s October business confidence survey, due to be released on November 10. Trading Economics’ calendar listed a previous reading of -13 points and a forecast of -14 points. The calendar also listed third-quarter home-loan data for November 11, with a forecast decline of 6.0% quarter on quarter. The same date includes housing investment lending data, with a forecast fall of 14.0%. These indicators follow the latest rate increase and are among the next domestic data points markets are tracking to assess economic activity.