SYDNEY - [AAP] Australian and New Zealand Banking Group (ASX: ANZ) has lifted full-year profit 18 per cent to $6.938 billion and is looking at handing cash back to shareholders in the form of a buyback as it continues to divest assets.

Cash profit for the 12 months to September 30 was roughly in line with analyst expectations, while net profit, which includes one-off items and other charges, rose 12 per cent to $6.406 billion.

The lender held its final dividend at 80 cents per share, bringing its full-year payout to $1.60, but shareholders could be in line for a windfall in the year ahead as ANZ pockets the proceeds from its various divestments.

Chief executive Shayne Elliot said ANZ's healthy capital position meant a buyback could be on the cards as it offloads Asian operations along with superannuation and life insurance businesses in Australia and New Zealand.

"As we sell things we get the funds and so what we've said is there's no real incentive for us to sit on lazy capital," Mr Elliott said.

"So, when we do get those proceeds--and we haven't really received that money from any of those sales just yet--when we do, we would be in a position to consider returning that to shareholders."

ANZ lifted its common equity Tier 1 capital ratio 0.96 percentage points to 10.6 per cent--above the Australian Prudential Regulation Authority's 10.5 per cent "unquestionably strong" benchmark that banks have until 2020 to reach.

ANZ's operating income fell 1 per cent to $20.273 billion, but costs fell for the first time since 1999, Mr Elliott said.

He said revenue growth was getting harder to come by amid increasing competition for consumers, which showed the value of refocusing on Australian and New Zealand retail banking.

"That's why we have been transforming ANZ, getting ready for that," Mr Elliott said.

"Really making sure that we put our resources--whether they are intellectual resources, our financial resources--to work where we can make a difference and we can win."

Earnings per share soared 17 per cent to 237.1 cents, while return on equity jumped 1.59 percentage points to 11.9 per cent.

"We are at the mid-point of executing a multi-year transformation of ANZ," Mr Elliott said.

"What's most pleasing about 2017 is we have not only delivered better outcomes for shareholders, we are also making genuine progress in delivering better outcomes for customers and in rebuilding community trust."

ANZ'S ANNUAL RESULT:

* Cash profit up 18pct to $6.938bn

* Net profit up 12pct to $6.406bn

* Operating income down 1pct to $20.273bn

* Final dividend flat at 80 cents, fully franked

 

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