Australia and New Zealand Banking Group (ANZ) appears to be making progress towards achieving its 2030 strategic objectives. However, the bank and other major Australian lenders are facing increasing challenges related to loan performance, according to S&P Global Ratings.
S&P said in a report published on 9 November 2026 that weakening confidence in the housing market could keep property prices under pressure through 2027. It also expects competition across the banking sector to intensify as ANZ and its major domestic rivals expand their use of artificial intelligence and other emerging technologies.
ANZ reported a cash profit of $5.25 billion for FY2026, which ended on 30 September, representing a 31% increase compared with the previous financial year.
The bank has also recorded improvements in operational efficiency, with its cost-to-income ratio falling to 49.3% in FY2026 from 53.4% in FY2025, S&P noted.
The ratings agency added that ANZ remains on track to complete the accelerated integration of Suncorp Bank by June 2027. It also expects the bank to introduce a unified customer-facing platform for retail and small business customers by September 2027.
S&P expects ANZ’s credit losses to remain relatively contained over the next two years, at approximately 15 basis points.
However, the agency highlighted several potential risks, including economic uncertainty, rising inflation and interest rates, particularly those linked to the Middle East conflict, as well as continued weakness in the housing market.
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