Check against delivery
Thank you Nuno, and good morning everyone.
FY26 Overview
Our FY26 results demonstrated that we are delivering value for our shareholders while transforming the bank to be fit for growth.
We have structurally reset our cost base while delivering on our immediate priorities and building momentum, including in our Australian businesses. The result is a stronger financial performance, greater capacity to invest in strategic growth initiatives and increased reward for shareholders.
Our progress is evident across key financial measures. Statutory profit was up 23% and on a cash profit basis, excluding the significant items in FY25, profit was up 10%. Return on tangible equity increased 109bps to 11.56%, our cost-to-income ratio improved 416bps to 49.26%, and revenue to risk-weighted assets increased 8bps to 4.83%. We are generating better returns from both our cost base and the capital that we deploy.
Momentum strengthened across our balance sheet in the second half. Higher rates supported margins and replicating portfolio returns. However, they also increased customer preference for higher yielding deposits, and contributed to tougher trading conditions which softened Markets income particularly in the fourth quarter. Pronounced currency movements were largely offset by lower translated expenses and earnings hedges, limiting the net impact.
Our capital position was supported by stronger organic capital generation which created capacity for approximately $30 billion in lending growth and to maintain a stable dividend.
Credit quality remained resilient, reflected in low individual provision loss rates. Our total shareholder return was 20.7% for the year and our earnings of 253 cents per share is up 30% year on year.
We have declared a final dividend of 83 cents per share. The DRP will be neutralized. Franking on the final dividend increased to 80% from 70% a year ago.
We enter FY27 with stronger business momentum, a structurally lower cost base and the balance sheet capacity to support our next phase of growth.
Cash profit & FX Impacts
For the full year, the Group delivered a cash profit of $7.6 billion, up 10% excluding the significant items in FY25.
As I highlighted at the first half, FX movements were pronounced this year. We hedge a large portion of our non-Australian dollar earnings to reduce volatility. We were able to offset $594 million translation headwind in revenue, with a $302 million translation benefit in expenses. We further reduced the net FX impact through $234 million of realised FX earnings related hedge gains. As a result, the net impact on profit before provisions was approximately $50 million.
For the remainder of the presentation, unless I state otherwise, I will speak to performance on a constant-currency basis, and exclude FY25 significant items, to better reflect our business performance.
Revenue Full Year
FY26 revenue increased 3%, with revenue excluding Markets also growing 3%, supported by year-on-year growth of 3% in Net Interest Income and 6% in non-interest income. Markets delivered $2.1 billion of revenue for the year, growing 1% year-on-year.
Net Interest Income growth was supported by balance sheet momentum which accelerated through the year, and margins benefited from a higher interest rate environment. Non-interest income growth reflected the ANZ Worldline joint venture acquisition, higher fees within some of our businesses, and the non-repeat of prior-period items.
Growing capital-light revenue is a key priority under ANZ 2030. Consistent with this, we are now reporting net fee and commission income more prominently across our results announcements, statutory reporting and divisional disclosures. This provides greater transparency and a clearer basis for assessing progress against this priority.
Revenue Second Half
In the second-half, our revenue increased 2% supported by ex-Markets income growth of 3%.
Net Interest Income excluding Markets increased 4% compared with the first half. As I mentioned, our Australia Retail and Business & Private Bank divisions have improved momentum, together delivering 7% revenue growth half-on-half.
Overall, the second half demonstrates improving momentum in our core businesses and gives us a stronger revenue position heading into FY27.
Net Interest Margin (NIM)
Turning to margins, NIM excluding Markets increased 2bps to 2.30% in the second half, while Group NIM was stable.
I will now talk to the key drivers of Group NIM movement over the half. The replicating portfolio contributed 5bps as lower rate hedges continued to roll onto higher rates. Disciplined deposit pricing contributed a further 2bps. Wholesale funding also contributed 1bp in the half as we took advantage of favourable funding markets.
These benefits were partly offset by deposit mix, as customers continued to favour higher-yielding products, together with ongoing competitive pressure on asset margins, particularly in Australian and New Zealand home lending.
In the fourth quarter, NIM excluding Markets reduced 4bps quarter on quarter, to 2.28%. Around half of that reduction reflected higher Group Centre liquids, with the balance largely driven by asset and funding mix.
Looking ahead, the replicating portfolio remains supportive, and we expect 4bps NIM benefit over the next 12 months, 2bps higher than we had previously indicated. Also, we do not expect the Group Centre liquids impact, experienced in the fourth quarter, to persist through the first half of 2027. However, competition and funding mix pressures are expected to continue.
On balance, noting that margin outcomes may vary from quarter to quarter, we expect 1H27 NIM ex Markets to remain broadly stable half on half.
Balance sheet: Customer deposits
Moving to the balance sheet, customer deposit growth excluding markets was strong and broad-based, increasing 8% or $51 billion year on year.
Payments and Cash Management was a particular highlight, with operational at call deposits up 10% in the year, with around a quarter of that growth from new customers. This reflects the strength of our; relationship model, international network and Transactive Global platform.
Australia Retail deposit momentum improved, with household deposits growing around system as we exited the year. Business & Private Bank grew deposits in the seasonally softer second half for the first time in three years, while New Zealand grew at around system and maintained its market-leading deposit share at approximately 30%.
Consistent with the broader industry, customer preference for term deposits became more pronounced in the second half and we saw this trend across all divisions.
Balance sheet: Lending (NLA)
Turning to lending.
We saw strong momentum in lending across our businesses. Loans grew 6% over the year, accelerating in the second half, up 4% half-on-half.
Institutional lending grew by $19bn or 12% this year, across regions and products. The depth and scale of our International trade capabilities contributed to strong year-on-year growth as our clients added resilience to their supply chains.
Corporate finance lending growth gained momentum towards the end of the year, providing an exit-rate benefit while maintaining stable front-book margins and portfolio credit quality.
In Australia Retail, home lending returned to system growth in the second half, supported by improved service levels and participation in the government’s First Home Buyer Guarantee Scheme. We also delivered disciplined lending growth in Business & Private Bank, with at-system growth in the second half weighted towards larger customers in our middle-market segment.
In New Zealand we maintained share in Business and Agri lending and balanced volume and margin in a highly competitive home lending market.
Markets revenue
Markets, as I mentioned earlier, delivered $2.1 billion of income this year, up 1%.
Our Markets income was lower in the second half particularly impacted by the final quarter, as customers shortened hedging tenors, against the backdrop of an uncertain global economic environment. This contributed to lower FX and Rates income, while Commodities was impacted by weaker precious metals demand, as we highlighted at the third quarter.
On the other hand, Capital Markets delivered a record half as we supported our customers through an elevated funding cycle.
Operating Expenses
Now turning to expenses. On a constant-currency basis, expenses reduced by 4%. On a reported basis, excluding significant items recognised in 2025, expenses reduced by 7%, ahead of our initial market guidance of 3%.
While FX movements provided a benefit, the cost outperformance was also underpinned by stronger productivity.
We delivered $902 million of in-year gross cost savings, $100 million more than our initial guidance.
A significant part of this came from simplifying our operating model, including the program announced last September to reduce approximately 3,500 roles and a further 1,000 managed service contractors. That program is now complete.
We also reduced our reliance on consultants and contractors, lowered third-party spend through vendor rationalisation, and strengthened cost management across the Group.
Collectively, all our actions delivered more than $1 billion in benefits on an annualised basis.
Suncorp Bank synergies contributed a further $82 million of productivity, primarily through the removal of duplicative project spend.
Investment spend was approximately $1.5 billion for the year. We are focused on prioritisation and driving more value for every dollar spent. Our capitalised software balance remains below peers, reflecting our continued approach of expensing a higher proportion of investment upfront.
Overall, the performance demonstrates the structural cost reset we have achieved and strengthened cost accountability across the Group.
Taking into account our expected full year cost of the ANZ Worldline ownership, our pro forma FY26 cost base would be $11.26 billion. Looking ahead, we will continue to deliver productivity to both offset inflationary pressures and support the growth phase of our Strategy. Therefore, we expect FY27 total expenses to remain flat to the pro forma FY26 cost base of $11.26 billion.
Portfolio quality
Moving to portfolio quality. With an overall FY26 loss rate of 4bps, the credit quality of our book remains robust. This charge remains below our long run loss rate of 11bps and reflects the quality and diversification of the book across our business lines.
For the second half, the individual provision charge was $212 million, which included $79m of wholesale provisions and $133 million of Retail provisions. This resulted in a second half annualised loss rate of 5bps. While slightly up on prior periods, the book remains resilient to macro-economic conditions.
Non-performing exposures were flat year-on-year at 0.57% of Total Committed exposures. I note that there was a 2bp increase in the second half primarily driven by our Australian mortgage portfolio reflecting higher cost of living and interest rate pressures on our customers. Our 90-day-plus delinquencies increased by 12bps to 95bps over the last 6 months with a small increase in hardship assistance.
Despite the increase in delinquencies, Australian Mortgage Individual Provision losses remained low at $8 million for the half, supported by strong collateral coverage with a portfolio dynamic LVR of 40%. Overall portfolio quality remains strong, with 87% of customers ahead on repayments and 75% maintaining savings buffers of at least three months.
We continue to stress test our mortgage portfolio against a range of economic factors including unemployment, interest rates and house prices and we remain confident in its resilience as a result.
Our Institutional portfolio remains a high-quality book, with 92% of total exposures investment grade. The portfolio continues to be heavily weighted towards low-risk segments, with 60% of exposure to Sovereigns and Financial Institutions, while higher-risk, watch and control list exposures reduced over the half.
In Business & Private Bank, our portfolio continued to perform well with our small business portfolio 90+ day delinquencies remaining steady for the half at 2.2%, and our Wholesale portfolio credit quality remaining broadly stable. We note some emerging stress in the Agriculture and Transport and Logistics portfolios reflecting the higher cost operating environment. Overall, the Business & Private Bank portfolio remains well collateralised with 83% of exposure fully secured, with a loss rate of 8bps for the half, and 7bps for the year, which is down 2bps on FY25.
Our New Zealand portfolio also remains resilient. The Agriculture sector has strengthened, early delinquency and hardship indicators have improved while 90 + day delinquencies for Mortgages were modestly up 3bps in the half.
Provisioning
Now moving to collective provisions, you would recall that we increased our provision balance in the first half having considered risks to our portfolio from the geopolitical environment particularly in the Middle East. We have maintained this prudent approach in the second half, continuing to recognise the evolving economic and geopolitical environment, including the impact of elevated inflation and interest rates which are reflected in our base economic forecast.
For the second half, we have further increased our collective provision balance with a charge of $96 million driven largely by portfolio growth, credit quality movements and a minor change to our scenario weight settings and overlay adjustments.
Our collective provision balance has increased to $4.53 billion, with coverage increasing 2bps over the prior corresponding period to 1.20% of credit risk-weighted assets. This is now approximately $2.1 billion above our base case scenario, providing coverage across a wide range of economic outcomes.
This approach has taken into account the following:
One, around 53% of our scenario weight settings are weighted towards downside outcomes, reflecting the geopolitical environment;
Two, our Australia Mortgage Collective Provision settings have increased balances by $65m for the half and $327m over the past 18 months.
Three, our onshore and offshore portfolios continue to be both resilient and of high quality as supported by consistently low individual provision loss rates.
And four, that Group collective provision balances cover 13 times the individual provision losses taken in FY26, remaining steady and well above peers.
Overall, our settings continue to provide appropriate coverage, and as always we continue to actively review this position as conditions evolve.
Capital
Turning to Capital.
The CET1 ratio ended the year at 11.99%, including the 8bps impact of the ANZ Worldline Australia acquisition. This outcome is underpinned by stronger financial performance which delivered 80bps of organic capital generation in the second half, up from 71bps in the prior corresponding period. The interim dividend and risk weighted asset growth from customer lending was fully funded from this capital generation.
The CET1 outcome absorbed 9bps from previously disclosed data methodology changes that are expected to at least partially unwind in the 2027 financial year, and 22bps, net of the capital floor, from higher IRRBB Risk Weighted Assets in the second half.
On IRRBB, given the interest rate environment, we took the opportunity to pre-hedge a portion of our replicating portfolio prior to existing hedges rolling off to support Net Interest Income. The associated 8bps capital impact of that will roll off in the first half of financial year 2027. Higher interest rates, particularly through September, also impacted the market value of replicating portfolio hedges, consistent with the broader sector. Rates have subsequently moved off those recent peaks.
We also remain focused on capital efficiency and higher-returning growth. Two external RMBS transactions delivered 5bps of capital benefit this year, with further initiatives underway to support capital optimisation.
The declared final dividend is 83 cents per share and with significantly improved earnings the dividend payout ratio is 66%, aligned closely with our target range of 60% to 65%.
Shareholder returns are supported by increasing the franking level to 80%, up from 70% a year ago and reflective of improving performance in the Australian geography.
Funding
On funding, our average surplus liquidity coverage ratio and net stable funding ratio are stable year-on-year and well above regulatory minimums. We executed our 2026 funding program as planned and additionally brought forward $3.5 billion of 2027 funding, given attractive market levels. Looking ahead, in the 2027 financial year we expect to issue around $25-30 billion.
Conclusion
In closing, we enter FY27 from a stronger position, with a clear focus on
- Sustaining revenue momentum,
- Maintaining cost discipline and
- Allocating funding and capital to opportunities that generate returns in line with our ANZ 2030 strategy.
Thank you. I will now pass to Kylie for Q&A.
For media enquiries contact:
Lachlan McNaughton
Head of External Communications
Tel: +61 457 494 414
Siobhan Jordan
Senior Media Relations Manager
Tel: +61 403 988 326
For analyst enquiries contact:
Kylie Bundrock
Group General Manager, Investor Relations and M&A
Tel: +61 403 738 809
Cameron Davis
Executive Manager, Investor Relations
Tel: +61 421 613 819
Important Information
References to “ANZ” and “ANZ Group” are to ANZ Group Holdings Limited ABN 16 659 510 791 and its subsidiaries.
This document contains information about the activities of the ANZ Group current as at 6 November 2026. It is information given in summary form, does not purport to be complete and should be considered together with other information published by ANZ.
It is not intended to be and should not be relied upon as financial advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.
This document contains certain forward-looking statements including statements regarding our intent, belief or current expectations with respect to the ANZ Group’s business operations, market conditions, results of operations and financial condition, capital adequacy, sustainability objectives or targets, specific provisions and risk management practices. These matters are subject to risks and uncertainties that could cause the actual results and financial position of the ANZ Group to differ materially from the information presented herein. Such forward-looking statements are made as at 6 November 2026 and are provided to assist investors with their understanding of the ANZ Group and its activities. When used in this document, the words ‘guidance’, ‘forecast’, ‘estimate’, 'goal', 'target', 'indicator', 'plan', 'pathway', ‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to the ANZ Group and its management, are intended to identify forward-looking statements. Forward-looking statements may also be otherwise included in this document, including by the use of footnotes. Those statements, including in respect of ANZ’s 2030 Strategy, immediate priorities and targets, are not guarantees or predictors of future performance, and may be affected by inaccurate assumptions or unknown risks and uncertainties or other factors, many of which are beyond the control of the ANZ Group or may not be known to the ANZ Group at the time of the preparation of this content, such as instability in global economic conditions, external exchange rates, competition in the markets in which the ANZ Group will operate, and the regulatory environment. Each of these statements and related actions is also subject to a range of assumptions and contingencies, including the actions of third parties, interdependencies between strategic and regulatory programs of work, management decisions, execution risk, and is based on corporate plans that are subject to change and may vary materially as plans continue to be developed. As such, these statements should not be relied upon in isolation when making investment decisions.
There can be no assurance that actual outcomes will not differ materially from any forward-looking statements contained herein. To the maximum extent permitted by law, the ANZ Group makes no assurance, guarantee or warranty (express or implied) that the forward-looking statements will be realised.
The forward-looking statements only speak as at 6 November 2026 and no representation is made as to their correctness after this date. Unless required by law, no member of the ANZ Group undertakes to publicly release the result of any revisions to these statements to reflect events or circumstances after this date.
Financial information in this document is presented on a cash profit basis unless otherwise stated. Cash profit, a non-IFRS measure, represents the ANZ Group’s preferred measure of the result of its core business activities, enabling readers to assess ANZ Group and divisional performance against prior periods and against peer institutions. To calculate cash profit, the ANZ Group excludes non-core items from statutory profit. For the definition cash profit refer to page 72 of the ANZ Group Holdings Limited (ANZGHL) FY26 Consolidated Financial Report Dividend Announcement and Appendix 4E available on ANZ shareholder website.
All amounts in this document are in Australian dollars unless otherwise stated. Sum of parts within charts and commentary may not equal totals due to rounding.