Australia's fourth-largest bank has delivered its best annual result in years after making inroads on a five-year plan to better its peers.
ANZ Group made a bottom-line net profit of $7.27 billion in fiscal 2026, up 23 per cent on the prior year.
Its preferred cash profit measure, which strips out large items, jumped 31 per cent to $7.59 billion in the 12 months ended September 30.
"This increase in our cash profit and higher shareholder returns was underpinned by our disciplined management of margins, capital and costs, and business growth," chief executive Nuno Matos said on Monday.
The past 10 months have been marked by geopolitical tensions, including wars in the Middle East and Ukraine, and the consequent energy price shocks as well as the rapid rise of artificial intelligence in people's lives.
"Competition for capital to fund data centres, government spending and the energy transition has intensified," Mr Mato said.
The expenditure super-cycle, combined with inflationary supply side shocks, has driven interest rates higher globally, including in Australia, which has just seen its fifth interest rate rise since February.
"Against this backdrop, the economies across our geographic footprint remain relatively resilient," Mr Matos said.
In Australia, ANZ's retail customers are showing resilience and the majority are ahead of scheduled repayments.
"However, for some customers, financial pressure did become more evident in the second half," Mr Matos said.
"We continue to work with those requiring assistance to identify appropriate, sustainable support."
ANZ's total credit impairment charge for the year was $582 million after individual provisions linked to customers rose by $33 million and future collective provision lifted by $108 million.
Mr Matos joined ANZ in May 2025 and released its 2030 strategic plan five months later.
Phase one began with a "get the basics right" tone, which involved resetting its internal culture, fast-tracking the integration of Suncorp Bank, upgrading its digital offering for customers, cutting duplication and costs, and shoring up risk controls.
Mr Matos declared all five priorities were on track, generating $874 million in gross cost savings and an improved cost-to-income ratio of more than four percentage points to 49.2 per cent.
“Our transformation is moving at pace and shareholders are being rewarde. We are continuing to invest for growth in line with ANZ 2030, and the business is gaining momentum,” he said.
ANZ declared a final dividend of 83 cents, taking the total for the year to $1.66, in line with fiscal 2025.
