ANZ Bank Update

Submitted by Craig Strzelecki on 12 April, 2007 - 18:53

ANZ Bank has a maintained 12 month target price of $30.90 per share from analyst Macquarie Research Equities. The ANZ bank remains the stockmarket analyst's third preference in the banking sector behind Westpac (WBC) and National Australia Bank (NAB). However, ANZ's market leading personal division is expected to remain a standout by continuing to deliver double-digit revenue growth. ANZ is the first of the major banks to report, expected two weeks from today on the 26th of April. Consumer banking is one of the most important profit drivers for the major banks, and accordingly, a common theme is a clear focus on improving consumer banking. In fact, the analysts have run the numbers and highlight that consumer banking represents the largest profit pool for the major banks, accounting for about ~30% of total profit in FY06. In today’s story, they look at ANZ, the stand-out leader in the consumer banking space, ahead of the stock kicking off the banking reporting season on the 26th of April. Personal Continues to Perform Strongly (highest revenue growth FY06). ANZ's recent per-close trading update confirmed revenue growth is tracking towards the upper end of its 7-10% target range and that the personal division continues to perform well.

ANZ bank to maintain a lead over peers in consumer banking. Over the past few years, outperformance in the consumer banking has consistently lifted the personal division’s contribution to group earnings. To this end, this has diversified ANZ's income and offset its traditional reliance on institutional banking. Parts of the formula can be copied, yet success is not guaranteed. While it is true that the majors can replicate elements of ANZ's approach to driving growth, success is not guaranteed. In pursuing organic growth objectives, execution is the name of the game. So those banks that demonstrate the required approach and allow a realistic timeframe have the best chance of narrowing ANZ bank's lead.

ANZ Banking Group Limited is listed on the Australian Stock Exchange (ASX) under stock code ANZ. You can view their investor website here. ANZ was listed on the ASX on 30 September, 1969. John McFarlane is the CEO of ANZ and Charles B Goode the Chairman. ANZ is involved in general banking, mortgage and instalment lending, life insurance, property development, leasing, hire purchase and general finance, international and investment banking, investment and portfolio management and advisory services, nominee and custodian services. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!