Australian lender ANZ reports 31% rise in full-year cash profit

Australian lender ANZ Group announced a 31% increase in full-year cash profit on Monday, driven by effective management of margins, capital, and costs. The bank, Australia's fourth-largest lender by market capitalization, reported a cash profit of A$7.59 billion for the year ending September 30, in line with analysts' expectations and a notable improvement from the previous year's A$5.79 billion.

Operating expenses decreased by 14% in fiscal 2026, benefiting from lower restructuring expenses and the absence of a settlement amount related to the Australian Securities and Investments Commission case. ANZ's Australia Retail division saw its annual cash profit soar to A$1.71 billion, up from A$771 million the previous year, largely due to increased home loan volumes.

As of the year-end, net loans and advances for the Australia Retail division totaled A$280 billion, an increase from A$269 billion the previous year. The bank's net interest margin, a key profitability indicator, dipped slightly to 1.53%, mainly due to competitive pressures across most divisions and the timing of Reserve Bank of Australia rate changes.

The Reserve Bank of Australia raised interest rates by 25 basis points to 4.85% on November 8, marking the highest rate since December 2008, following a 6-3 vote. ANZ's common equity tier 1 ratio, a measure of spare cash, declined to 12.0% by the financial year-end. The bank declared a final dividend of 83 Australian cents per share, consistent with the payout from the previous year.