ANZ (ASX:ANZ) share price on watch after Q3 update

ANZ has released its Q3 update today…
The post ANZ (ASX:ANZ) share price on watch after Q3 update appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be on watch today.

This follows the release of the banking giant’s third quarter update this morning.

What happened in the third quarter?

At the end of the third quarter, ANZ finished the period in a very strong capital position, which could bode well for the ANZ share price today.

The banking giant’s CET1 ratio stood at 12.2%. And while the recently announced $1.5 billion on-market share buy-back will cause it to fall by 35 basis points, this is still well-ahead of APRA’s unquestionably strong benchmark of 10.5%. This could potentially mean further capital returns in the near future.

The bank also revealed a total provision release of $32 million for the quarter. This comprises a provision charge of $21 million and a collective provision release of $53 million.

At the end of the period, the company’s provision balance was $4.25 billion. This gives it a collective provision coverage ratio 1.24%.

COVID loan deferrals

ANZ provided the market with an update on customer loan repayment deferral support related to current lockdowns. Pleasingly for the ANZ share price, the data is very positive.

The bank advised that it has provided ~1,300 loan deferrals during the current lockdowns. Positively, this reflects just ~$600 million or ~0.2% of loans on a total housing loan portfolio of ~$280 billion. Furthermore, the current deferrals are the equivalent to just ~1% of total deferrals provided in the prior 2020/2021 deferral period.

It is a similar story for Australian Business Lending, with just ~50 loan deferrals in place. This represents less than 0.3% of its total business loans. This is well below the ~24,000 business loans provided with repayment deferrals in the prior deferral period.

Unsurprisingly, approximately 80% of the housing and business loan deferrals are on loans in New South Wales.

What about its earnings?

As with the third quarter update by Westpac Banking Corp (ASX: WBC) yesterday, but unlike National Australia Bank Ltd (ASX: NAB) last week, ANZ elected not to provide the market with details on its earnings for the third quarter.

Investors will have to wait patiently for its full year results later this year for details on that.

The post ANZ (ASX:ANZ) share price on watch after Q3 update 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

Leading brokers name 3 ASX shares to sell today

ANZ (ASX:ANZ) share price falls on broker downgrade
Here’s why the ANZ (ASX:ANZ) share price is up 4% in a week
ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

2 buy-rated ASX dividend shares for income investors

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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!