ANZ earns A$7.59 billion for the year but sets aside more for bad loans

The numbers. Statutory profit was A$7.27 billion and cash profit A$7.59 billion. Cash profit is the bank's preferred measure: it strips out one-off and non-core items. Return on tangible equity rose 1.09 points to 11.56%. The cost-to-income ratio improved by more than 4 points to 49.26%. Savings from simplifying the bank reached A$902 million.

The dividend. The final dividend is 83 cents a share, the same as the interim, so 166 cents for the year. Franking rose from 75% to 80%. Franking is a tax credit for Australian shareholders: the higher it is, the less tax they pay on the dividend. There is no discount in the dividend reinvestment plan.

Where the caution is. Total credit impairment charges were A$582 million. The collective provision charge was A$222 million for the year, A$108 million more than in 2025. The bank links this to portfolio growth and tougher conditions from higher rates and living costs. CEO Nuno Matos said most Australian retail customers are ahead on repayments, but for some, financial pressure became more evident in the second half. Non-performing exposures were unchanged at 0.57%.

The backdrop. AAP reports that Australia has just had its fifth rate rise since February. Matos links higher global rates to competition for capital for data centres, government spending and the energy transition. In 2027 the bank aims to finish integrating Suncorp Bank by June and a single customer front-end by September. Its CET1 capital ratio is 11.99%.

Confirmed facts

• For the year to September 30, 2026, ANZ made a statutory profit of A$7.27 billion and a cash profit of A$7.59 billion, up 31% on a year earlier.^[1][2]
• Without 2025's significant items, cash profit rose 10% and return on tangible equity was 11.56%.^[1]
• The final dividend is 83 cents a share, 80% franked, for 166 cents over the year.^[1][2]
• Credit impairment charges were A$582 million; the collective provision charge was A$222 million, A$108 million more than in 2025.^[1][2]
• The bank said financial pressure on some customers became more evident in the second half.^[1][2]
• Simplification savings were A$902 million, the cost-to-income ratio 49.26% and CET1 11.99%.^[1]

Implications

• ConfirmedANZ is putting more money aside in case borrowers stop paying.
• Our readingIf Australian rates stay high, other banks may keep raising provisions too. This is our view.
• Our readingThe dividend did not grow, but higher franking means Australian holders keep a bit more after tax. This is our view.

Still unknown

• How much mortgage arrears will rise in 2027
• How the market will judge the result: the first day's share move is not the answer
• Whether the Suncorp Bank integration stays on schedule

Who it affects

Australia, New Zealand. Holders of Australian bank shares, borrowers in Australia and anyone tracking interest rates

Sources

1. ANZ Group: 2026 Full Year Result & Proposed Final Dividend November 9, 2026 · official
2. AAP: ANZ plan delivers with big bank's best result in years November 8, 2026 · media