ANZ Profit Surges $7.6b as Cost Cuts Pay Off, Shares Dip
ANZ Bank reported annual cash profit of $7.6 billion for the year to September, up 31 per cent. Chief executive Nuno Matos said late home loan repayments have ticked up, and shares fell 1.5 per cent shortly after markets opened on Monday.
ANZ Bank reported annual cash profit of $7.6 billion for the year to September on Monday, November 9, 2026, in a result where ANZ profit surges $7.6b by 31 per cent from a year earlier. Chief executive Nuno Matos said late repayments on home loans have ticked up.
Last year's result was dragged down by charges from a cost-cutting drive. ANZ said that if these "significant items" were excluded, cash profit for the year rose 10 per cent.
Shares in ANZ fell 1.5 per cent shortly after markets opened on Monday.
What drove the result
Operating expenses fell 14 per cent, while operating income rose 3 per cent. The bank's net interest margin, a key measure of profitability that compares what a bank earns on loans with what it pays on funding, was unchanged at 1.53 per cent.
Higher official interest rates helped the margin. Competition in the home loan market offset that benefit.
Provisions for bad and doubtful debts, money set aside for loans that may not be repaid, rose 32 per cent to $582 million.
Citi head of Australian bank research Thomas Strong said the result beat consensus expectations, driven by lower bad debts and better cost control than expected.
Signs of pressure on borrowers
Matos said the global backdrop had become more volatile over the past year. He pointed to rising oil prices, geopolitical tensions and the artificial intelligence boom.
He described retail customers as "largely resilient". Some 87 per cent were ahead on their repayments, and 75 per cent kept savings buffers of at least three months.
"However, we acknowledge that some customers are experiencing financial pressures, which has been more evident in the second half," he said.
Chief financial officer Farhan Faruqui said non-performing exposures were flat over the year but increased in the second half. He said the rise was primarily driven by the Australian mortgage portfolio, reflecting higher cost of living and interest rate pressures.
"Our 90-day plus delinquencies increased by 12 basis points to 95 basis points over the last six months, with a small increase in hardship assistance," Faruqui said. He added that individual provision losses remained low at $8 million for the half, supported by strong collateral coverage.
Small business delinquencies held steady at 2.2 per cent over the second half. Faruqui noted "some emerging stress" in the agriculture and transport and logistics portfolios.
Dividend and provisions
ANZ announced a final dividend of 83 cents a share. Franking, the tax credit attached to dividends, rose from 70 per cent to 80 per cent.
Faruqui said the bank was keeping a "prudent approach" by lifting its collective provisions in the second half. The increase accounts for the evolving economic and geopolitical environment, including elevated inflation and interest rates.
