Australian lender ANZ reported a 31% rise in full-year cash profit on Monday, driven by effective management of margins, capital, and costs, along with business growth. The bank posted a cash profit of A$7.59 billion ($5.21 billion) for the year ended September 30, aligning with market expectations and surpassing last year’s A$5.79 billion.
Operating expenses declined by 14% in fiscal 2026, attributed to lower restructuring expenses and the absence of a settlement amount with the Australian Securities and Investments Commission. The Australia Retail division saw its annual cash profit climb to A$1.71 billion from A$771 million last year, boosted by higher home loan volumes.
Net loans and advances for the Australia Retail division reached A$280 billion as of September end, up from A$269 billion last year. However, the net interest margin slipped marginally to 1.53%, impacted by competition and the timing of Reserve Bank of Australia rate changes. The Reserve Bank of Australia recently raised interest rates by 25 basis points to 4.85%, the highest since December 2008.
ANZ’s common equity tier 1 ratio, a measure of spare cash, fell to 12.0% as of the financial year-end. The bank declared a final dividend of 83 Australian cents per share, matching last year’s payout.