ANZ misses some expectations, warns capital competition to keep rates higher

ANZ reported a 31% rise in annual cash profit to A$7.6 billion for the year to September 30, matching Visible Alpha’s estimate, but its shares fell 4.2% in afternoon trading. Business Recorder reported that net interest margin eased to 1.53% from 1.55% in 2025, while second-half net interest income of A$9 billion was about 2% below analyst forecasts.

Chief Executive Nuno Matos said demand for funding from AI and other investment areas was adding pressure to borrowing costs, and suggested rates could stay elevated for longer. ANZ’s operating expenses dropped 14% in 2026, and cash profit at its Australian retail business rose to A$1.71 billion from A$771 million, supported by increased home loan volumes.