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 Source: Bloomberg

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.


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