ANZ (ASX:ANZ) share price higher after beating expectations in FY21

This banking giant’s shares are rising on Thursday…
The post ANZ (ASX:ANZ) share price higher after beating expectations in FY21 appeared first on The Motley Fool Australia. –

The market may be in the red today, but the same cannot be said for the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.

In late morning trade, the banking giant’s shares are up 1.5% to $28.80.

Why is the ANZ share price outperforming today?

Investors have been bidding the ANZ share price higher today following the release of its full year results for FY 2021.

For the 12 months ended 30 September, the bank reported a 72% jump in statutory profit after tax to $6,162 million and a 65% increase in cash earnings from continuing operations to $6,198 million.

This strong profit growth was underpinned by significant reduction in provisions compared to the prior corresponding period, tightly managed expenses, and profit growth in Australia Retail and Commercial.

Also potentially giving the ANZ share price a boost was its strong capital position. The bank finished the period with a CET1 ratio up 100 basis points to 12.3%. This means the bank has $6 billion of surplus capital above of APRA’s requirements, which could bode well for potential share buybacks in the future.

In light of its strong performance, the ANZ Board was able to declare a fully franked final dividend of 72 cents per share, bringing its full year dividend to 142 cents per share. This is up from 60 cents per share in COVID-impacted FY 2020.

How does this compare to expectations?

The team at Goldman Sachs responded positively to the release, noting that ANZ’s results came in ahead of its expectations.

The broker commented: “ANZ reported 2H21 cash earnings (company basis) from continued operations of A$3,208 mn, which was up 37% on pcp and 11% ahead of GSe, with the beat driven by higher revenues and a lower BDD charge. As such, 2H21 PPOP came in 6% higher than GSe, with the better-than-expected result driven by higher trading income and a better-than-expected performance on NIMs, partially offset by higher expenses. We note that even adjusting for the better than expected trading income, 2H21 revenues were still c. 1.5% better than GSe.”

“The proposed final DPS of A72¢ was slightly higher than GSe A70¢ and implies a payout ratio of 63% and will come with a non discounted DRP that will be neutralised by acquiring shares on market. The 2H21 CET1 ratio of 12.3% (18.35% globally-harmonised) was 13bps stronger than GSe,” it added.

Goldman currently has a buy rating on the ANZ share price with a price target of $30.71. Though, this recommendation and target could change once it has fully absorbed the result.

The post ANZ (ASX:ANZ) share price higher after beating expectations in FY21 appeared first on The Motley Fool Australia.

Should you invest $1,000 in ANZ right now?

Before you consider ANZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher

ANZ (ASX:ANZ) share price on watch after FY21 profit surge

5 things to watch on the ASX 200 on Thursday

Leading brokers name 3 ASX shares to sell today

Here’s why Morgans is tipping 21% upside for the ANZ (ASX:ANZ) share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!