ANZ on Friday announced an eight per cent drop in cash profit to $6.7 billion after rival NAB revealed a similar slide a day earlier.
Competition for home loans and deposits, as well as high inflation, had impacted profits, said ANZ chief executive Shayne Elliott.
Amid price pressure from the fellow big banks and challenger Macquarie Group, ANZ managed to increased both its mortgage book and deposits by seven per cent.
The bank's net interest margin, a key metric of loan profitability, declined to 1.57 per cent from 1.7 per cent.
A similar decline in profitability due to home lending competition was observed by NAB CEO Andrew Irvine.
ANZ recorded an increase in customers requiring hardship support due to higher interest rates, Mr Elliott said.
"Our data shows customers, in general, are holding up better than expected," he said in a statement.
"However, we know it's not the case for everyone."
ANZ boss Shayne Elliott says more customers are requiring hardship support. (Darren England/AAP PHOTOS)
Despite the fall in full-year profit, it was still the bank's second best revenue performance on record.
The result was impacted by $196 million in one-off acquisition costs for ANZ's purchase of Suncorp Bank, which contributed two months' worth of earnings.
"Suncorp Bank's solid customer acquisition along with growth in home loans and deposits have been particular highlights," Mr Elliott said.
ANZ lowered its full-year dividend to $1.66 a share from $1.75 a year prior.
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