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

Direct answer

ANZ, Australia’s fourth largest bank, reported a full year cash profit of A$7.59 billion on November 9, 2026, up 31 percent from A$5.79 billion a year earlier. The jump came mainly from deep cost cuts, not from much stronger revenue, and the bank’s shares fell on the day because lending margins were slightly weaker than expected.

What happened

ANZ reported cash profit of A$7.59 billion, about $5.21 billion, for the year ended September 30, 2026, Reuters reported. That was in line with the Visible Alpha consensus of A$7.55 billion, and well above last year’s A$5.79 billion. Statutory net profit was A$7.27 billion, up 23 percent.

The 31 percent headline is flattered by last year’s comparison. Excluding significant items that hit the previous year, underlying cash profit rose about 10 percent.

Operating expenses fell 14 percent to A$11.07 billion, helped by A$902 million in gross cost savings. The bank’s cost to income ratio improved to 49.26 percent. Cash operating income rose only 3 percent to A$22.48 billion.

The net interest margin, the gap between what the bank earns on loans and what it pays on deposits, was 1.53 percent, down from 1.55 percent in 2025. Second half net interest income of A$9 billion came in about 2 percent below analyst forecasts.

ANZ declared a final dividend of 83 cents a share, taking the full year dividend to A$1.66, the same as last year. The final dividend is paid on December 18 to shareholders on the register at November 13.

Credit impairment charges were A$582 million. Chief executive Nuno Matos said financial pressure became more evident among some borrowers in the second half, as higher interest rates and rising living costs took hold.

Australia retail cash profit rose to A$1.71 billion from A$771 million a year earlier, while New Zealand cash profit fell 3 percent to NZ$2.31 billion.

ANZ shares fell 4.2 percent in afternoon trading in Sydney, while the wider S&P/ASX 200 index was little changed.

Why it matters for beginners

A bank’s cash profit is its preferred measure of day to day earnings, leaving out one off items. When it jumps mainly because costs fell, the result is real but less exciting than a jump driven by more lending or higher income.

The share price fell even though profit rose, because investors watch the margin and the outlook more than the headline number. A small miss on lending income can matter more than a big profit rise.

The dividend matters for income investors. ANZ kept its full year payout at A$1.66 a share.

The warning about borrower strain is a reminder that higher interest rates help bank margins but squeeze households. Australia’s central bank raised its cash rate to 4.85 percent on November 3, 2026, the highest since 2008. Read our earlier post on that decision: https://investclaritypath.com/australia-rba-raises-rates-4-85-percent-november-2026/

What to watch next

Whether ANZ can keep costs down without cutting service, and whether credit losses rise if borrowers keep struggling.

ANZ’s annual general meeting in Perth on December 17, 2026, and the final dividend payment on December 18.

The bank’s plan to absorb Suncorp Bank by mid 2027.

Australia’s next inflation and jobs data, and whether the Reserve Bank raises rates again.

FAQ

What is cash profit?

It is a bank’s preferred measure of its regular earnings, leaving out one off gains and losses. It is not the same as statutory profit, which follows accounting rules.

Why did ANZ shares fall if profit rose 31 percent?

The headline rise was flattered by a weak comparison year, and lending income and margins came in slightly below forecasts. Investors also worried about rising credit costs.

What dividend will ANZ shareholders get?

A final dividend of 83 cents a share, taking the full year to A$1.66, paid on December 18 to shareholders on the register at November 13.

Sources

Reuters, “Australian lender ANZ reports 31% rise in full-year cash profit”, November 9, 2026. https://www.tradingview.com/news/reuters.com,2026:newsml_L2N46P053:0-australian-lender-anz-reports-31-rise-in-full-year-cash-profit/

AAP, “ANZ’s cost-cutting delivers bumper profit growth”, November 9, 2026. https://aapnews.aap.com.au/news/anz-plan-delivers-with-big-bank-s-best-result-in-years

This article is for general information and education only. It is not legal or financial advice.