ANZ annual profit rises as costs fall and retail lending grows
Australia's fourth-largest listed lender reports stronger full-year earnings as lower costs and loan growth support profitability. The result comes with cash profit broadly in line with market expectations, while margin pressure and a lower capital ratio temper the performance.
Highlights
- ANZ reports full-year cash profit of A$7.59 billion, up 31% from A$5.79 billion, matching Visible Alpha consensus of A$7.55 billion.
- Operating expenses fall 14% in fiscal 2026, aided by lower restructuring costs and no ASIC settlement, while common equity tier 1 ratio drops to 12.0%.
- Australia Retail division annual cash profit rises to A$1.71 billion from A$771 million, with net loans increasing to A$280 billion despite net interest margin slipping to 1.53%.
Full-year earnings and balance sheet trends
As reported by Reuters, ANZ posted cash profit of A$7.59 billion for the year ended September 30, up 31% from A$5.79 billion a year earlier and broadly in line with a Visible Alpha consensus of A$7.55 billion.Operating expenses decline 14% in fiscal 2026, helped by lower restructuring costs and the absence of the Australian Securities and Investments Commission settlement amount. ANZ says management of margins, capital and costs, alongside business growth, supports the annual result.
The bank's common equity tier 1 ratio, a measure of capital strength, slips to 12.0% at the end of the financial year. ANZ also declares a final dividend of 83 Australian cents per share, unchanged from last year.
Retail lending growth offsets margin pressure
The Australia Retail division records annual cash profit of A$1.71 billion, up from A$771 million last year, driven by higher home loan volumes. Net loans and advances in the division stand at A$280 billion at the end of September, compared with A$269 billion a year earlier.Net interest margin, a key profitability gauge, edges down to 1.53% as competition weighs across most divisions and the timing of Reserve Bank of Australia rate changes affects returns. The central bank lifted interest rates by 25 basis points to 4.85% last week, the highest level since December 2008, in a 6-3 vote.
Our earlier article examined how the S&P 500’s push toward 8,000 is being tested by the third-quarter earnings season amid higher oil prices, elevated Treasury yields, and political uncertainty. It also pointed to concentration and weak market breadth—where a small group of megacaps drives index performance—while noting that banks and other rate-sensitive areas face added pressure as yields rise.
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