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Date : 07/11/2022

ANZ Bank (ASX: ANZ) shares are in focus following FY22 Results

ANZ Bank (ASX: ANZ) is one of the big 4 banks in Australia, with headquarters in Melbourne. It has the second-highest total assets and is the fourth-largest by market capitalization among the big four Australian banks.

Last week, ANZ Bank (ASX: ANZ) shares released its results for focus following FY22 results, giving its shareholders reason to be optimistic about the company’s future. There was an increase of 5% in cash profit, 13% in Net Interest Margin, and 4 cents per share in dividends as part of ANZ’s financial results. And this is what is ultimately putting ANZ Plus back on the right track.

ANZ: FY22 Results

ANZ shares rose slightly after releasing FY22 results and were trading at $25.21 per share. The current market cap of the company is approximately AUD 75.38 Billion.

  1. ANZ reported an increase in statutory NPAT of 16% to $7.12 billion.
  2. There was a 5% increase to $6.5 billion in cash earnings from ongoing activities.
  3. The company’s cash earnings decline before credit impairment, tax, and “notables” amounted to $3.1 billion.
  4. The business reported a NIM of 1.68% in the year’s second half.
  5. The yearly dividend paid out by ANZ increased by 3% to $1.46.

ANZ: How successful were ANZ’s business divisions?

The Australia Retail division had a 6% rise in profits from the first to the year’s second half. Executives are pleased with how the year ended, noting that house loan approval times have returned to being competitive with significant competitors. With deposits totalling $1.2 billion, ANZ Plus had more client adoption than any other new digital bank in Australia.

Good volume growth and steadfast margin control led to a 10% gain in revenue for the Australia Commercial division and an 11% increase in profit for the year. Specifically, the company’s lending to specialized industries, such as agriculture and healthcare, expanded at an annualized rate of 6%.

Furthermore, the New Zealand division reported a 5% half-year profit rise, and the Institutional division reported a 10% half-year revenue growth due to high demand. That’s because it still has a dominant share of the retail and funds-management markets, two of its most important categories.

ANZ has fallen behind its rivals.

However, ANZ’s financial performance has lagged compared to rivals CBA (ASX: CBA) and NAB (ASX: NAB). Even though ANZ saw a record housing boom during COVID, interest rates have risen.

Because of intense rivalry and a technological lag, ANZ has held a far lesser part of the retail banking and residential mortgage sectors than its Big Four peers. ANZ’s loan approval process takes two to four weeks, whereas its rivals take just two to four days.

ANZ: What does the future hold?

In the same way that a company’s financial results may provide a glimpse into the future, ANZ has the potential to do well similarly. After reaching an agreement in July to purchase Suncorp’s retail bank, the company has said that it plans to continue its rollout of ANZ Plus and would also integrate the bank into its operations.

Assuming that the trend of increasing interest rates continues, ANZ Bank Shares Investment Analysis, ANZ-ASX Shares to buy. Most analysts anticipate an increase in ANZ’s earnings per share of 4.8%, which would amount to $2.40 per share. Investors, however, need to be cautious about what will happen when their clients’ low-fixed-rate contracts expire, and they are left with increased interest payments.

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