SYDNEY—ANZ Group Holdings said its annual net profit was flat on a year earlier, but the bank increased its dividend even as higher interest rates impact economic activity.

The Australian major lender reported a statutory profit of 7.1 billion Australian dollars (US$4.51 billion) for the 12 months through September. Analysts had expected a full-year net profit of A$7.21 billion, according to FactSet’s consensus estimate.