S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and delivered total returns, including dividends, of 7% in FY26.
The financials sector underperformed in FY26, which was in stark contrast to its outperformance in FY25.
Financials were actually the best performer of the 11 market sectors in FY25, delivering a near-30% total return to investors.
Things changed dramatically in FY26.
The S&P/ASX 200 Financials Index (ASX: XFJ) fell 1.89%, but the 3.58% dividend yield lifted it into the green for a total return of 1.69%.
Here are the top five ASX 200 financial shares for capital growth in FY26.
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1. Infratil Ltd (ASX: IFT)
Infratil is a New Zealand-based infrastructure investment company.
This ASX 200 financial share lifted 28.8% to finish the year at $12.61 apiece.
One of the highlights of FY26 was Infratil's data centre business, CDC Data Centres (CDC), signing Australia's largest-ever data centre contract.
CDC was already the largest data centre provider across Australia and New Zealand before the deal was done.
The 30-year, 555MW agreement with a US customer highlighted the structural global theme of surging demand for artificial intelligence (AI) infrastructure.
Infratil also delivered impressive earnings growth for FY26.
The company reported an 11% rise in proportionate operational EBITDAF to NZ$989 million. The company also raised its FY27 guidance by 21%.
2. AMP Ltd (ASX: AMP)
The AMP share price rose 27.4% to close out the year at $1.61.
AMP has been on a multi-year comeback journey following the Banking Royal Commission in 2018.
AMP was amongst the companies exposed for the worst conduct, prompting a multi-year restructure of the business.
Brokers appear positive on the outlook for this ASX 200 financial share from here.
As my colleague Samantha reports, AMP is focused on improving its operational leverage and looking at new capital relief strategies to boost returns.
Out of 10 analysts rating AMP shares on the TradingView platform, eight have a strong buy or buy rating on AMP shares.
Nine analysts have provided a 12-month target price ranging from $1.68 to $1.94.
Thus, there is a uniform expectation of a further share price rise for AMP in FY27.
3. Challenger Ltd (ASX: CGF)
The Challenger share price rose 23.8% to finish at $10 on 30 June.
This ASX 200 financial share went up on increased investor confidence that Challenger is gaining market share as Australia's leading retirement income provider.
Arguably, the biggest catalyst for Challenger's share price in FY26 was the 1H FY26 report.
Challenger reported record annuity sales of $3.8 billion, up 32% year over year.
The company also bumped up its fully-franked interim dividend by 7%, and launched a $150 million buyback.
This reinforced investor confidence in the earnings outlook ahead.
4. ANZ Group Holdings Ltd (ASX: ANZ)
The ANZ share price rose 21.2% to $35.35 on 30 June.
New CEO Nuno Matos has been restructuring the business and integrating Suncorp Group Ltd (ASX: SUN)'s banking division post-acquisition.
In 1Q FY26, ANZ achieved a quarterly cash profit of $1.94 billion, up 75% from the 2H FY25 quarterly average.
Management said the strong profit was driven by a 4% increase in operating income and a 21% cut in operating expenses.
The ASX 200 bank share rose 8.5% on the day of the report, and hit a record high of $41 the next day.
This ASX 200 financial share is also attractive because it offers the highest trailing dividend yield of the big banks.
5. Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price rose 13.2% to $9.69 on 30 June.
The defining event in FY26 was Magellan's proposed merger with the highly successful boutique investment bank, Barrenjoey Capital Partners.
Magellan and Barrenjoey completed the merger on 1 July.
Former UBS bankers Matthew Grounds and Guy Fowler OAM founded Barrenjoey in 2020.
Magellan was a seed investor in Barrenjoey, and will seek shareholders' approval to rebrand as Barrenjoey Group Limited at the October AGM.
Magellan received more than 90% approval from shareholders at the merger vote in April.
This ASX 200 financial share has crumbled almost 80% over five years. The stock entered a downward spiral in 2021 after losing a major client. Its co-founder, Hamish Douglass, also resigned.
Assets under management have dropped from $113 billion in July 2021, when Magellan shares traded at $50 apiece, to $38 billion as of the last update in March.
