ANZ Group's annual profit climbs 23% on lower operating costs

what happened

Australia's ANZ Group posted a 23% jump in annual net profit, to A$7.27 billion for the twelve months ending in September, as operating expenses shrank after recent layoffs and a restructuring program, according to Dow Jones Newswires. In US dollars the figure equals about US$4.99 billion. Total operating income held steady at A$22.14 billion, below the A$22.63 billion analysts had expected, and net profit also came in under the nearly A$7.40 billion consensus compiled by Visible Alpha.

Excluding one-off items, including A$585 million of restructuring charges in fiscal 2025 tied to 3,500 job cuts, cash profit grew 10% to A$7.59 billion, and net operating costs dropped about 7% to A$11.07 billion. Net interest margin, a gauge of lending profitability, narrowed by 2 basis points to 1.53%, which the bank partly blamed on competition over asset pricing.

The bank, Australia's fourth-largest lender by market value, kept its dividend at A$0.83 per share, in line with market expectations. Rival Westpac had recently cited similar margin pressure, along with the effect of rate increases from the central bank. The Reserve Bank of Australia has lifted its cash rate five times this year, to 4.85%, the highest level in 18 years, in an effort to bring inflation down.

why it matters

Profit growth came from cost discipline rather than revenue or lending, while margins are under pressure and the RBA's tightening keeps borrowing costs high. Credit impairment charges rose to A$582 million from A$441 million, so investors will watch loan quality and the rate path closely.

market impact

ANZ shares and Australian banks: cost savings support profit, but net profit missed forecasts, so the effect is mixed

• ↔ANZ Group shares mixed — cost-driven profit growth offset by net profit below analyst forecasts

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