ANZ share price: 3 things to watch ahead of half year results

Australia and New Zealand banking group’s (ANZ) share price falls in anticipation of its half yearly earnings results

ANZ share price has dropped 0.64%, at time of writing, ahead of the ANZ’s half yearly figures which are to be released on Wednesday.

1: Will the ANZ produce a strong half-year profit?

Some analysts have forecast the ANZ’s half year earnings to decline from their prior period by an estimated 1.4%. Goldman Sachs analysts expect the bank to maintain its interim dividend at 80 cents per share.

Sachs has also estimated a revenue of $9.439 million, 3.7% lower than its previous period. However, many analysts also expect revenue trends to be weaker than expected.

According to Reuters, for the fiscal year ending 30 September 2018, ANZ’s interest income increased 4% to A$30.33 billion, and its net interest income after loan loss provision increased 1% to A$13.83 billion.

2: ANZ’s share price and the banking royal commission

Ahead of the results on Wednesday, The ANZ's share price has fallen 0.64% anticipating messy results.

It's been a difficult year for Australia’s big four banks including the ANZ and Australia’s, NAB, Westpac and Commonwealth bank. It comes after a royal commission enquiry into the banks found they had delayed customer compensation payments.

The Hayne’s report found that the banking industry's problems were aggravated by corporations refusing to accept responsibility, leading to long delays in customer compensation payments.

The big four banks have paid back an estimated $4.1 billion so far, with some estimates even predicting a higher number of around $5 billion in customer compensation paypbacks.

The ASX200 bank index has slipped 1% over the year as a result, and has fallen down 18% over the past five years.

3: Will the sale of the ANZ’s wealth business, IOOF impact its half year results?

The bank’s intended sale of its wealth business OneOath financial services (IOOF), could be a factor in its half year results and a factor to watch, according to analysts.

Analysts say they will watch out for how the ANZ accounts for the impact of the sale and how it could potentially affect its results, and any loss of extra costs, particularly on customer remediation.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.