The ANZ Group Holdings Ltd (ASX: ANZ) share price is under the microscope after reporting its FY26 result.
ANZ is one of the largest ASX bank shares, providing loans, savings accounts and banking services to households and businesses.
FY26 result
Here are the highlights from the 12 months to 30 September 2026:
- Operating income grew 3% to $22.5 billion
- Operating expenses fell 14% to $11 billion
- Profit before provisions increased 26% to $11.4 billion
- Provision charge worsened by 32% to $584 million
- Underlying cash profit grew 10% to $7.6 billion
- Cash profit increased 31% to $7.6 billion
- Annual dividend per share maintained at $1.66
What happened in the report?
The ASX bank share revealed that net loans and advances grew 4% to $861 billion. In constant foreign exchange rate terms, net loans and advances grew by 6%.
Reported customer deposits grew by 9% to $815 billion. In constant foreign exchange rate terms, customer deposits rose by 12%.
Cost-cutting was a key driver of the company’s earnings improving in FY26. Impressively, its cost-to-income ratio improved by 416 basis points (4.16%) to 49.26%.
However, there was a mixed performance across its market share metrics.
It said that in Australian retail banking, it was the main financial institution (MFI) for 11.3% of the market, a reduction of 40 basis points (0.4%) from FY25.
The business and private bank MFI increased 70 basis points (0.7%) to 17.1%.
Suncorp Bank – which it acquired earlier this decade – saw its MFI share fall 60 basis points (0.60%) to 1.9%.
Its New Zealand personal MFI share improved 150 basis points to 33.6% and the New Zealand business MFI share improved 120 basis points to 31.3%.
Credit quality
While operating expense reduction was positive, the ASX bank share did see an increase in the full-year credit impairment charge to $582 million.
Within that, it saw a $360 million individual provision charge of $360 million, $33 million higher than FY25. This represents a 4 basis point (0.04%) annualised individual provision loss rate, with losses remaining low and a reflection of “continued strong overall credit quality of a well diversified portfolio”.
The collective provision balance increased $151 million to $4.53 billion.
Outlook for the ANZ share price
In 2027, the business said that it will deliver two major transformation projects, the integration of Suncorp Bank and the single customer front-end. It also wants to deliver a significant uplift and investment in capabilities through growth initiatives.
The bank is seemingly doing the right things to lift its game with its expenses, efficiencies and customer service. However, it will need to continue growing its loan book to deliver sustainable profit growth, so it’ll be interesting to see what happens in FY27 considering the hit to housing loan demand following interest rate hikes and tax changes in the Federal budget.
It’s decent option for dividends, but there are other ASX dividend shares I’d rather buy.
