ANZ: Half Year Result

Submitted by Share Trading on 23 April, 2008 - 14:01

Macquarie Research, an Australian stockmarket analyst and researcher has posted their commentary about the ANZ Half Year result.

ANZ: Half Year Result Commentary

The half year results in the banks have been highly anticipated as investors continue to look for signals that the write-downs of bad debts and the squeezing of margins have subsided. This morning saw Australia and New Zealand Banking Group Limited (ANZ) lead the other banks to be the first to report and has met expectations in a number of areas resulting in a positive reaction on market today. In today’s note, Macquarie Research Equities (MRE) delves into the result and identifies current macro situations that may be mirrored in the reports from the other banks.

ANZ announced a first half net profit after tax of 1.653 billion with cash EPS of $0.873 and a divided per share of $0.62. These were all inline with MREs forecasts and the overall result met market expectations, although margins were weaker and labour costs higher. MRE identify that the margin pressure may affect their forecasts for the other banks. ANZs announcement they have underwritten its DRP and the Royal Bank of Scotland’s ability to raise a record breaking 12 Billion Pound rights issue prove that capital markets are now functioning a little more normally.

Now might be a good time to use a dividend play strategy on ANZ with a healthy dividend confirmed and market conditions stabilising, reducing the downside share price risk when using this strategy. The dividend of 62 cents represents an un-geared yield of over 4.5%p.a. which can be increased to over 20%p.a. when purchasing ANZIMG. If the warrant is held for over 45 days the dividend retains its franking credits.