ANZ Profit Jumps 31% to A$7.59 Billion as Cost Cuts Pay Off

ANZ Group Holdings just posted a 31% jump in full-year cash profit to A$7.59 billion (about US$5.21 billion), landing almost exactly on analyst expectations and giving Australia's banking sector its biggest headline of Monday morning in Sydney. The result, for the year ended September 30, 2026, was powered less by lending growth than by an aggressive cost-cutting program that stripped 14% out of operating expenses in a single year.

What happened

ANZ, Australia's fourth-largest lender by market capitalisation, reported cash profit of A$7.591 billion, up from A$5.79 billion a year earlier and in line with a Visible Alpha consensus estimate of A$7.55 billion. Statutory net profit rose 23% to A$7.270 billion. The bank declared a final dividend of 83 cents per share, franked at 80%, taking full-year dividends to 166 cents per share. The final dividend is payable on December 18 to shareholders on the register on November 13.

One number needs context: strip out the "significant items" that dragged down last year's result — restructuring charges and an Australian Securities and Investments Commission settlement — and cash profit rose a more modest 10%. The headline 31% is real, but a large part of it reflects how weak the comparison year was, not a sudden surge in banking revenue.

The key facts

Cash profit: A$7.591 billion, up 31% year on year (up 10% excluding last year's significant items).
Statutory profit: A$7.270 billion, up 23%.
Operating income: A$22.479 billion, up just 3%.
Operating expenses: down 14% to A$11.074 billion, with A$902 million in gross cost savings — ahead of the bank's A$875 million target.
Cost-to-income ratio: fell to 49.26% from 58.82%.
Net interest margin: edged down to 1.53% as lending competition stayed intense.
Credit impairments: A$582 million, up about 32%, as the bank set aside more against potential loan defaults.
Australia Retail: cash profit more than doubled to A$1.71 billion from A$771 million, helped by higher home loan volumes.
New Zealand: cash profit fell 3% to NZ$2.306 billion.

Why it's blowing up

Bank earnings set the tone for the ASX week, and ANZ's print is the first big test of whether Australia's lenders can keep growing profit when their core lending margin is shrinking. A 1.53% net interest margin shows that even with the cash rate at 4.85%, competition for home loans is eating the benefit of higher rates. ANZ's answer — cut costs faster than margins compress — worked this year: expenses fell 14% while income rose only 3%, and that gap is essentially the whole profit story.

Chief executive Nuno Matos framed the result against a tougher world, pointing to rising oil prices, geopolitical tensions and the artificial intelligence boom as forces reshaping the backdrop for banks. The cost program, part of the bank's ANZ 2030 strategy, beat its own savings target, which is why the headline number landed on consensus despite the softer margin and the weaker New Zealand contribution.

What's next

The questions now sit in FY27. Credit impairment charges rose to A$582 million, and investors will watch whether that is prudent provisioning or an early sign of stress in the loan book. Transformation spending also continues, so the easy cost wins from simply not repeating last year's one-off charges will not repeat. With the dividend held at 166 cents for the year, the market's verdict on Monday's ASX session will show whether a cost-led profit jump is enough while margins stay under pressure. This article reports what ANZ announced and how the numbers break down; it is not investment advice.

Sources

FAQ

How much profit did ANZ make in FY26?

ANZ reported cash profit of A$7.591 billion for the year ended September 30, 2026, up 31% from A$5.79 billion a year earlier. Statutory net profit rose 23% to A$7.270 billion.

Why did ANZ's profit jump 31%?

Mainly because last year's result was weighed down by restructuring charges and a regulatory settlement. Excluding those significant items, cash profit rose 10%, helped by a 14% cut in operating expenses and A$902 million in cost savings.

What dividend did ANZ declare?

ANZ declared a final dividend of 83 cents per share, franked at 80%, taking the full-year dividend to 166 cents per share. It is payable on December 18 to shareholders registered on November 13.

What is ANZ's net interest margin?

ANZ's net interest margin edged down to 1.53%, showing that intense competition for loans is limiting how much the bank benefits from higher interest rates.