ANZ Group Holdings fell 4.3% to A$38.60 after releasing FY2026 results, triggering a sell-the-news reaction despite beating profit expectations.
The bank reported headline cash profit up 31% to A$7.59 billion, slightly above Bloomberg consensus of A$7.5 billion. However, the underlying profit figure stripped out prior-year significant items and showed only a 10% increase, removing any meaningful surprise.
Credit impairment charges jumped 32% to around A$584 million as the bank set aside additional provisions for potential loan losses. CEO Nuno Matos acknowledged that late home loan repayments have been rising.
ANZ's common equity tier 1 capital ratio slipped to 12.0% at year-end. The bank's share of the Australian retail banking market contracted by 40 basis points to 11.3%. The full-year dividend remained flat at A$1.66 per share.
The S&P/ASX 200 Financials sector fell approximately 1.4% on the day. The broader ASX 200 index closed flat. National Australia Bank had already set a cautious tone for big-four bank earnings earlier in the month, and ANZ's capital position emerged as the focal point for institutional investors reassessing sector exposure.