Insights

The ANZ share price has gained 6% in the last 6 months

ANZ shares have risen over the last six months.
The post The ANZ share price has gained 6% in the last 6 months appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has risen by around 6% over the last six months.

Could there be more on the way?

ANZ’s most recent result

For the first half of the 2021 calendar year, Australia was almost entirely COVID-19 free. The economy was recovering and ANZ was reporting a resurgence of profit.

In the first six months of ANZ’s 2021 financial year to 31 March 2021, the big four ASX bank generated $2.94 billion of statutory profit after tax, which was an increase of 45% compared to the second half of FY20. Continuing operations cash profit increased 28% to $2.99 billion.

However, underlying profit (excluding credit impairment, tax and large items) fell 4% to $4.87 billion.

ANZ noted that improving credit conditions resulted in a release of almost $500 million during the half. While the pandemic hasn’t resulted in large credit losses to date, it still has almost $4.3 billion in reserve if conditions get worse.

Management said that lower revenue in its institutional business were largely expected due to the impact of falling interest rates as well as the normalisation of its market revenue after an exceptionally strong 2020.

The recovery of the headline profit allowed the ANZ board to increase the half-year dividend from $0.35 to $0.70 per share.

The ANZ share price fell 3.5% in the week after the release of this result.

Capital management

ANZ revealed in July 2021 that it intended to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The ANZ Chair Paul O’Sullivan said:

Despite the very real challenges being experienced by many of our customers, we have the financial strength to continue to support our customers, while also returning surplus capital to shareholders. After reviewing options, we consider an on-market buy-back to be the most prudent, fairest and flexible method to return capital in the current environment.

Our capital position may allow future capital returns to be considered, however we will continue to focus on balanced and prudent outcomes for all stakeholders.

Is the ANZ share price worth looking at?

Morgans says that ANZ is a buy, with a price target of $34.50. That suggests the bank could rise by more than 20% over the next 12 months if the broker is right. The broker thinks there could be more capital returns to shareholders in time.

However, Morgan Stanley only thinks that ANZ shares are a hold with a price target of $28 whilst noting that the bank’s capital position was a lot stronger. On Morgan Stanley’s numbers, ANZ is valued at 15x FY22’s estimated earnings.

The post The ANZ share price has gained 6% in the last 6 months 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

2 buy-rated ASX dividend shares for income investors

ANZ (ASX:ANZ) share buyback, what does it mean for you?
Is the ANZ (ASX:ANZ) share price a buy right now?
Here’s what has been moving the ANZ (ASX:ANZ) share price in August 2021
What’s moving the ASX 200 Index (ASX:XJO) on Monday?

Motley Fool contributor Tristan Harrison 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!