ANZ Bank New Zealand posts NZ$2.53 billion profit for FY26
ANZ (Australia and New Zealand Banking Group Limited) released the ANZ Bank New Zealand Limited Registered Bank Disclosure Statement for the year ended 30 September 2026 on 9 November 2026. The disclosure shows a profit for the year of NZ$2,533 million, down from NZ$2,714 million in 2025.
Operating income was flat at NZ$5,555 million (2025: NZ$5,554 million). Net interest income rose to NZ$4,756 million (2025: NZ$4,652 million), while net fee and commission income was NZ$513 million (2025: NZ$483 million).
Operating expenses rose to NZ$1,997 million (2025: NZ$1,812 million), and that figure includes a NZ$125 million provision tied to the May 2026 High Court summary judgment in the representative proceeding. Credit impairment was a NZ$42 million charge, compared with a NZ$25 million release a year earlier.
| Metric (NZ$m) | FY26 | FY25 |
|---|---|---|
| Net interest income | 4,756 | 4,652 |
| Operating income | 5,555 | 5,554 |
| Operating expenses | (1,997) | (1,812) |
| Profit before income tax | 3,516 | 3,767 |
| Profit for the year | 2,533 | 2,714 |
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Balance sheet growth and capital position
Total assets reached NZ$219,460 million (2025: NZ$209,989 million), and net loans and advances were NZ$163,915 million (2025: NZ$158,683 million). Housing term loans were NZ$120,947 million (2025: NZ$115,835 million), while customer deposits were NZ$148,983 million (2025: NZ$143,542 million).
Banking Group capital ratios at 30 September 2026 were:
- Common equity tier 1 (CET1): 13.1% (2025: 12.9%)
- Tier 1: 14.6% (2025: 15.3%)
- Total capital: 16.1% (2025: 17.4%)
- Prudential capital buffer ratio: 7.1% (2025: 8.3%)
Risk weighted assets were NZ$115,282 million. The notes state that the Bank redeemed all of the NZ$938 million additional tier 1 capital subordinated debt on its optional redemption date in June 2026, and that the NZ$600 million tier 2 notes were redeemed in full on an optional call date during 2026.
Ordinary dividends paid totalled NZ$1,610 million during the year:
- March 2026: 9.9 cents per share, NZ$1,060 million
- September 2026: 5.1 cents per share, NZ$550 million
Liquidity metrics for the three months to 30 September 2026 were:
- Quarterly average core funding ratio: 90.6%
- Quarterly average one-week mismatch ratio: 7.5%
- Quarterly average one-month mismatch ratio: 6.5%
Asset quality and credit risk
The allowance for expected credit losses was NZ$797 million (2025: NZ$802 million), and loss allowances are 0.41% of gross balances (2025: 0.43%). Individually impaired assets were NZ$408 million (2025: NZ$369 million), and approximately 89% of on-balance sheet residential mortgage exposures have loan to valuation ratios not exceeding 80%.
An expected credit loss allowance is money a bank sets aside for loans that may not be repaid in full. It is built from several economic scenarios, each given a probability weight, plus any temporary management adjustments for risks the models miss. The weight on the severe downside scenario was lifted to 14.00% (2025: 12.50%), while management temporary adjustments fell to NZ$8 million (2025: NZ$52 million), which shapes how much of the allowance rests on modelled outcomes.
Segment results for FY26 are shown below. Segment comparatives were restated.
| Segment (NZ$m) | Operating income FY26 | Profit after tax FY26 | Profit after tax FY25 |
|---|---|---|---|
| Personal | 3,072 | 1,260 | 1,242 |
| Business & Agri | 1,019 | 519 | 538 |
| Institutional | 1,019 | 543 | 526 |
| Other | 445 | 211 | 408 |
Regulatory and legal matters investors should note
The Reserve Bank of New Zealand (RBNZ) confirmed two material breaches of its Outsourcing policy (BS11) during the period. The Bank has rectified the specific breach relating to the robust back-up arrangements and is undertaking a broader remediation programme that will need to be completed to RBNZ’s satisfaction. The disclosure states these issues had no financial impact.
ANZBGL is the subject of an enforceable undertaking with the Australian Prudential Regulation Authority (APRA) to uplift its management of non-financial risk, and the Bank will also deliver this uplift, where relevant.
On the High Court matter, summary judgment was granted in May 2026 against the Bank in favour of the representative plaintiffs. The Bank’s estimate of the maximum potential liability is NZ$125 million. The Bank has appealed to the Court of Appeal, the representative plaintiffs have cross-appealed, and the substantive proceedings are stayed pending determination of the appeal.
Investors tracking the litigation can read our detailed coverage of the CCCFA class action appeal, which traces the proceeding back to its 2021 origins under the Credit Contracts and Consumer Finance Act and the filing of the Court of Appeal challenge.
On capital rules, the prudential capital buffer rose from 5.5% to 6% effective 1 October 2026. Existing additional tier 1 perpetual preference shares are expected to progressively cease to qualify as tier 1 capital from December 2029, and the impact of RBNZ’s review on the Banking Group is described as currently uncertain.
Credit ratings as at 6 November 2026 are S&P Global Ratings AA- (Outlook Stable), Fitch Ratings A+ (Outlook Positive, changed from Stable on 10 September 2026) and Moody’s Investors Service A1 (Outlook Stable).
What happens next for ANZ Bank New Zealand
The disclosure sets out the following forward-looking items:
- The Banking Group’s climate statement for the year ending 30 September 2026 is to be accessible at anz.co.nz no later than 31 January 2027.
- No decision had been made as at 6 November 2026 on whether the Bank will redeem the perpetual preference shares, and any redemption is subject to prior written approval of RBNZ.
- A transitional period for implementing changes to standardised risk weights runs until 1 April 2027.
- NZ IFRS 18 is to be adopted in the financial year beginning 1 October 2027.
- The remaining capital ratio changes are not expected to be made before December 2028.
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