ANZ reported FY2026 cash profit of about A$7.6 billion, up 31% and slightly above consensus, but the increase was 10% after excluding significant expenses that depressed the prior-year result.

The headline profit growth came alongside broadly flat income: operating income was A$22.14 billion and net interest income was A$17.89 billion, while operating expenses fell 14% to A$11.19 billion.

ANZ generated A$902 million in gross cost savings, exceeding management’s expectations, and adjusted cash return on tangible equity improved to 11.56% from 10.47%.

The lower expenses reflected Nuno Matos’ cost-cutting efforts, including about 3,500 staff reductions and further investment in digital customer interfaces.

Credit impairment charges rose 32% to about A$582 million as ANZ increased provisions for potential loan losses; its collective provision charge nearly doubled to A$222 million from A$114 million amid higher interest rates and cost-of-living pressures.

Despite those emerging risks and an increase in late home-loan repayments, Matos said retail customers remained largely resilient, with most ahead on repayments; actual loan losses remained low.

ANZ said credit quality remained strong, with non-performing exposures unchanged at 0.57% of total credit exposure, while its Common Equity Tier 1 ratio stood at about 12.0%, down from the prior period.

The bank’s net interest margin edged down to 1.53% as competition across most divisions and the timing of Reserve Bank of Australia rate changes weighed on it.

The full-year dividend remained unchanged at A$1.66 per share, while Australian retail banking market share fell 40 basis points to 11.3%.

ANZ shares fell more than 4% after the results, with investors focusing on higher loan-loss provisions and the weaker capital ratio despite the profit increase.

Investors also saw weak second-half momentum, while competition continued to squeeze margins in home lending.

Matos’ ANZ 2030 plan, announced in late 2025, aims to streamline operations, focus on core banking and accelerate the integration of Suncorp Bank, which ANZ acquired in 2024.