Australia & New Zealand Banking (ANZGY) AI Stock Analysis

Compare

112 Followers

Top Page

Australia & New Zealand Banking

(OTC:ANZGY)

Rating:72Outperform

Price Target:―

ANZGY scores a 72 due to its solid financial performance and strategic achievements highlighted in the earnings call, such as the successful acquisition of Suncorp Bank. However, technical indicators suggest a bearish trend, and challenges in non-financial risk management and retail banking margins temper the overall outlook.

Australia & New Zealand Banking (ANZGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$62.98B

Dividend Yield4.97%

Average Volume (3M)10.32K

Price to Earnings (P/E)14.3

Beta (1Y)0.64

Revenue Growth10.18%

EPS Growth-3.06%

CountryUS

Employees43,094

SectorFinancial

Sector Strength72

IndustryBanks - Diversified

Share Statistics

EPS (TTM)0.77

Shares Outstanding2,971,365,700

10 Day Avg. Volume24,086

30 Day Avg. Volume10,323

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.71

Enterprise Value/Revenue1.73

Enterprise Value/Gross Profit1.73

Enterprise Value/Ebitda101.20

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Australia & New Zealand Banking Business Overview & Revenue Model

Company DescriptionANZ Group Holdings Limited provides various banking and financial products and services to individuals and business customers in Australia and internationally. It offers home and personal loans, deposits, and credit cards through the branch network, home loan specialists, contact centers, self-service channels, and third-party brokers. The company also provides asset financing for small business owners, medium and large commercial customers, high net worth individuals, and family groups. In addition, it offers working capital and liquidity solutions, including documentary trade, supply chain and commodity financing, cash management solutions, deposits, payments, and clearing services; loan products, loan syndication, loan structuring and execution, project and export finance, debt structuring and acquisition finance, and corporate advisory services; and risk management services. Further, the company provides banking and wealth management services to consumers, and private banking and small business banking customers through its internet and app-based digital solutions, network of branches, mortgage specialists, relationship managers, and contact centers; and traditional relationship banking and financial solutions for small, medium, and large enterprises, agricultural business segments, and government and government-related entities. ANZ Group Holdings Limited was founded in 1835 and is based in Melbourne, Australia.

How the Company Makes MoneyANZ makes money primarily through interest income generated from its lending activities, which include personal loans, mortgages, and business loans. In addition to interest income, ANZ earns revenue through fees and commissions from its wealth management services, transaction banking, and foreign exchange operations. The bank also benefits from its institutional banking segment, which provides services such as trade finance, cash management, and capital markets solutions. Significant partnerships with financial technology firms and other strategic alliances further enhance its service offerings and revenue potential. Additionally, ANZ's geographic diversification across Australia, New Zealand, and the Asia-Pacific region contributes to its robust earnings profile.

Australia & New Zealand Banking Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q4-2024)

% Change Since: 14.37%|

Next Earnings Date:Nov 10, 2025

Earnings Call Sentiment Neutral

ANZ's earnings call reflected a strong strategic progression with the successful acquisition and integration of Suncorp Bank and record performance in the Institutional segment. However, challenges remain in non-financial risk management and margin pressures in retail banking. The strategic focus on technology platforms like ANZ Plus and Transactive aims to address these challenges by reducing costs and improving customer engagement.

Q4-2024 Updates

Positive Updates

Completion of Suncorp Bank Acquisition

ANZ completed the purchase of Suncorp Bank, which is performing better than expected. This acquisition has significantly increased ANZ's customer deposit base, making it the second largest among Australian banks.

Institutional Segment Record Performance

ANZ's Institutional segment delivered another record result with industry-leading platform Transactive, achieving record revenues, profit before provisions, and return on equity.

ANZ Plus Growth

ANZ Plus achieved 1% share of all retail deposits in Australia within two years and is already home to nearly one in five of ANZ's active Australian retail customers, showing strong engagement and lower acquisition costs.

Strong Revenue and Lending Growth

Customer deposits increased 11% year-on-year, and lending grew with a step-up of $102 billion in gross lending assets, a 15% FX-adjusted increase.

Improved Capital Efficiency

Capital efficiency programs released around $30 billion of risk-weighted assets, contributing to improved financial metrics and shareholder returns.

Negative Updates

Non-Financial Risk Management Concerns

ANZ faces challenges in non-financial risk management, with APRA placing a capital overlay due to inadequate progress in this area.

Continued Margin Pressure in Retail Banking

The Australian retail banking sector faces significant margin pressure, requiring ANZ to focus on cost reductions and platform efficiencies.

Increased Costs Due to Suncorp Integration

Integration of Suncorp Bank led to higher costs, with the need to transition services and align with ANZ's operations.

Company Guidance

In the call, ANZ provided a comprehensive overview of its financial performance for Fiscal Year 2024, emphasizing several key metrics. The bank noted a strong strategic year, highlighted by the completion of the Suncorp Bank acquisition, contributing to a customer deposit increase of 11% year-on-year and making ANZ the second largest in customer deposits among Australian banks. ANZ's institutional segment delivered record revenues and return on equity, while ANZ Plus now holds a 1% share of all retail deposits in Australia. The bank reported its second highest revenue ever, maintaining stability from 2023 on a constant currency basis, with lending and deposit volumes growing robustly. Cash earnings and earnings per share showed significant growth over two to three years, driving better shareholder dividends. Additionally, substantial investments in technology platforms, amounting to $2.5 billion over five years, facilitated enhancements in efficiency and customer engagement, crucial for sustaining profitability amid challenging market conditions. ANZ also announced a final year dividend of $0.83 per share, franked at 70%, indicating stronger returns for shareholders.

Australia & New Zealand Banking Financial Statement Overview

Summary

Australia & New Zealand Banking presents a solid financial profile with consistent revenue growth and strong equity positioning. Despite a slight decline in net income, the company maintains financial stability with low leverage. Strong operating cash flows bolster liquidity, although further improvement in free cash flow relative to net income would enhance overall financial flexibility.

Income Statement

Positive

The income statement shows steady revenue growth with a revenue increase from 18,342 million in 2021 to 20,355 million in 2024. However, net income has decreased from 7,098 million in 2023 to 6,535 million in 2024, indicating some pressure on profitability. The gross profit margin remains strong, reflecting efficient cost management.

Balance Sheet

Positive

The balance sheet is robust with a high equity ratio as stockholders' equity stands at 69,857 million against total assets of 1,229,115 million, showing strong capital reserves. The debt-to-equity ratio is favorable with zero total debt in 2024, indicating low leverage and high financial stability.

Cash Flow

Positive

Operating cash flow has improved to 9,952 million in 2024 from 6,488 million in 2023, a positive sign for liquidity. However, free cash flow growth is constrained, and the free cash flow to net income ratio indicates room for improvement in cash generation relative to profitability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	62.25B	20.36B	20.28B	18.94B	17.83B	18.30B
Gross Profit	62.25B	20.36B	20.28B	18.94B	17.83B	18.30B
EBITDA	1.06B	0.00	0.00	0.00	0.00	0.00
Net Income	6.96B	6.54B	7.10B	7.12B	6.16B	3.58B
Balance Sheet
Total Assets	1.09T	1.23T	1.11T	1.09T	978.86B	1.04T
Cash, Cash Equivalents and Short-Term Investments	142.20B	112.99B	146.44B	157.53B	141.89B	116.27B
Total Debt	207.59B	0.00	150.08B	134.00B	126.74B	130.51B
Total Liabilities	1.02T	1.16T	1.04T	134.00B	126.74B	980.99B
Stockholders Equity	70.31B	69.86B	69.52B	65.91B	63.66B	61.29B
Cash Flow
Free Cash Flow	-1.36B	9.95B	5.88B	19.52B	43.26B	53.08B
Operating Cash Flow	-657.00M	9.95B	6.49B	20.18B	43.82B	52.28B
Investing Cash Flow	-47.74B	-42.12B	-10.69B	-1.82B	10.26B	-11.46B
Financing Cash Flow	-22.26B	17.91B	4.38B	-2.35B	-9.67B	-12.43B

Australia & New Zealand Banking Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.57

Price Trends

50DMA

19.64

Positive

100DMA

18.78

Positive

200DMA

18.68

Positive

Market Momentum

MACD

0.33

Negative

RSI

72.48

Negative

STOCH

99.94

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANZGY, the sentiment is Positive. The current price of 21.57 is above the 20-day moving average (MA) of 20.07, above the 50-day MA of 19.64, and above the 200-day MA of 18.68, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 72.48 is Negative, neither overbought nor oversold. The STOCH value of 99.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANZGY.

Australia & New Zealand Banking Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBVA	78 Outperform	$109.49B	9.67	18.32%	4.07%	25.64%	17.13%
BCS	78 Outperform	$71.41B	9.44	9.83%	2.12%	16.06%	64.31%
NWG	77 Outperform	$60.46B	9.73	13.80%	4.25%	10.03%	29.51%
ING	75 Outperform	$73.96B	11.51	12.08%	4.67%	1.13%	-1.14%
NU	75 Outperform	$57.87B	27.41	27.88%	―	28.56%	49.10%
ANZGY	72 Outperform	$62.98B	14.30	9.75%	4.97%	10.18%	-3.06%
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%

* Financial Sector Average

Performance Comparison

ANZGY

Australia & New Zealand Banking

21.57

2.93

15.72%

BBVA

Banco Bilbao

19.24

9.58

99.17%

BCS

Barclays

20.27

8.70

75.19%

ING

ING Groep

24.88

8.52

52.08%

NWG

NatWest Group

14.83

6.13

70.46%

Nu Holdings

13.10

-0.99

-7.03%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025