This report is the updated version of the report uploaded on 20 October 2023 at 8:13 PM GMT +13

ANZ Group Holdings Limited

ANZ Details

ANZ Group Holdings Limited (NZX: ANZ) is the non-operating holding company. It operates in six divisions: Australia Retail, Australia Commercial, Institutional, New Zealand, Pacific, and Group Center.

Financial Highlights for H1 FY 2023

• ANZ New Zealand reported the cash net profit after tax (or NPAT) of $1,107 Mn for the 6 months ended 31 March 2023, reflecting a 1% rise on the 6 months ended 30 September 2022.
• ANZ announced the cash profit from continuing operations of $3,821 Mn, reflecting a rise of 12% as compared to the prior half. Its statutory profit after tax for the half year ended 31 March 2023 amounted to $3,547 Mn. Its common equity tier 1 ratio rose to 13.2% and cash ROE increased to 11.4%.
• ANZ witnessed robust financial performance in which all the 4 divisions made the material contribution. The record result was because of solid revenue growth throughout the board as well as the benefits of having the well-diversified business.

Key Updates

ANZ acknowledged the decision of the Federal Court of Australia regarding the fully underwritten institutional share placement in the month of August 2015. The Court found that ANZ should have advised the market of the joint lead managers’ take-up of shares in the 2015 institutional share placement. The maximum penalty is $1 Mn.

Outlook

ANZ is having the robust capital position, credit loss provisions higher than any other time pre-COVID, a strong as well as diverse deposit base and the track-record of execution.

Key Risks

The slowdown in the global growth, volatility in the market, geopolitical tensions, etc. are some of the risks ANZ is exposed to.

Relative Valuation

Price/BV Based Illustrative Valuation

Stock Recommendation

Over the last 6 months, the stock has given a return of ~3.09%. The stock has made a 52-week low and high of NZD 24 and NZD 28.95, respectively. The company’s performance is exposed to the risks related to the global slowdown as well as geopolitical tensions. Therefore, investors should exit the stock.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of NZD 27.83 per share as on 18^th October 2023.

Technical Overview:

Daily Price Chart

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Disclaimer

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