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Australia and New Zealand Banking Group

ASX:ANZ
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ANZ
ASX
A$82B
Market Cap
  1. Home
  2. AU
  3. Banks
2018/02/22
Company description

Australia and New Zealand Banking Group Limited, together with its subsidiaries, provides various banking and financial products and services to individual and business customers. More info.


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Value

 Is Australia and New Zealand Banking Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Australia and New Zealand Banking Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

Current Discount
Amount off the current price Australia and New Zealand Banking Group is available for.
Intrinsic value
15%
Share price is A$28.18 vs Future cash flow value of A$33.23
Current Discount Checks
For Australia and New Zealand Banking Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Australia and New Zealand Banking Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Australia and New Zealand Banking Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Australia and New Zealand Banking Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Australia and New Zealand Banking Group's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Australia and New Zealand Banking Group is good value based on earnings compared to the AU Banks industry average.
  • Australia and New Zealand Banking Group is good value based on earnings compared to the AU market.
Price based on expected Growth
Does Australia and New Zealand Banking Group's expected growth come at a high price?
  • Australia and New Zealand Banking Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Australia and New Zealand Banking Group's assets?
  • Australia and New Zealand Banking Group is good value based on assets compared to the AU Banks industry average.
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Value checks
We assess Australia and New Zealand Banking Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Australia and New Zealand Banking Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (8.24%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (Excess Returns Model)

The calculations below outline how an intrinsic value for Australia and New Zealand Banking Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.



Value of Excess Returns

Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)

A$0.68 = (11.74% – 8.55%) * A$21.43)

Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)

A$11.80 = A$0.68 / (8.55% - 2.76%)

Value of Equity = Book Value per share + Terminal Value of Excess Returns

A$33.23 = A$21.43 + A$11.80

Inputs used in model:

Stable EPS = Stable Book Value * Return on Equity
A$2.52 = A$21.43 * 11.74%
Source: Weighted future Return on Equity estimates from 11 analysts.

Book Value of Equity per Share: A$21.43
Source: Weighted future Book Value estimates from 8 analysts.

Expected Growth Rate: 2.76%
Source: Risk Free Rate/ 10 year Government Bond Rate in AUD.

Discount to Share Price

Value per share:
A$33.23

Current discount (share price of A$28.18): 15.19%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 8.55% = 2.76% + (0.8 * 7.24%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (A$81,697,228,990).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

0.726 = 0.283 (1 + (1- 30%) (208.36%))

Levered Beta used in calculation = 0.8



Assumptions
  1. The risk free rate of 2.76% is from the 10 year government bond rate in AUD.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (7.24%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Australia and New Zealand Banking Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Australia and New Zealand Banking Group expected to grow at an attractive rate?
  • Australia and New Zealand Banking Group's earnings growth is positive but not above the low risk savings rate of 4.6%.
Growth vs Market Checks
  • Australia and New Zealand Banking Group's earnings growth is positive but not above the AU market average.
  • Australia and New Zealand Banking Group's revenue growth is positive but not above the AU market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Australia and New Zealand Banking Group's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • Australia and New Zealand Banking Group's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Australia and New Zealand Banking Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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Future performance checks
We assess Australia and New Zealand Banking Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the AU market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the AU market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Australia and New Zealand Banking Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Australia and New Zealand Banking Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Australia and New Zealand Banking Group's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Australia and New Zealand Banking Group's year on year earnings growth rate has been positive over the past 5 years.
  • Australia and New Zealand Banking Group's 1-year earnings growth exceeds its 5-year average (12.2% vs 3%)
  • Australia and New Zealand Banking Group's earnings growth has exceeded the AU Banks industry average in the past year (12.2% vs 5.2%).
Earnings and Revenue History
Australia and New Zealand Banking Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Australia and New Zealand Banking Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Australia and New Zealand Banking Group used its assets more efficiently than the AU Banks industry average last year based on Return on Assets.
  • Australia and New Zealand Banking Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
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Past performance checks
We assess Australia and New Zealand Banking Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Australia and New Zealand Banking Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Australia and New Zealand Banking Group's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Australia and New Zealand Banking Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Australia and New Zealand Banking Group has an acceptable proportion of non-loan assets held.
  • Australia and New Zealand Banking Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at Australia and New Zealand Banking Group are broadly funded by customer deposits.
  • Australia and New Zealand Banking Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Australia and New Zealand Banking Group has a sufficient allowance for bad loans.
  • Australia and New Zealand Banking Group has an acceptable level of bad loans (less than 2%).
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Financial health checks
We assess Australia and New Zealand Banking Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Australia and New Zealand Banking Group has a total score of 6/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Australia and New Zealand Banking Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.68%
Current annual income from Australia and New Zealand Banking Group dividends. Estimated to be 5.88% next year.
If you bought A$2,000 of Australia and New Zealand Banking Group shares you are expected to receive A$114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Australia and New Zealand Banking Group's dividend is above the low risk savings rate (3%).
  • Australia and New Zealand Banking Group's dividend is above the markets top dividend payers (4.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Australia and New Zealand Banking Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by net profit (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by net profit (1.5x coverage).
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Income/ dividend checks
We assess Australia and New Zealand Banking Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Australia and New Zealand Banking Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Australia and New Zealand Banking Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Australia and New Zealand Banking Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shayne Elliott, image provided by Google.
Shayne Elliott
COMPENSATION A$5,634,860
AGE 53
TENURE AS CEO 2.1 years
CEO Bio

Mr. Shayne Cary Elliott, BCom has been the Chief Executive Officer and Executive Director of Australia and New Zealand Banking Group Ltd since January 1, 2016. Mr. Elliott has over 30 years’ experience in banking in Australia and overseas, in all aspects of the industry. He joined ANZ as Chief Executive Officer Institutional in June 2009, and was appointed Chief Financial Officer in 2012. Prior to joining ANZ, he held senior executive roles at EFG Hermes, the largest investment bank in the Middle East, which included Chief Operating Officer. He started his career with Citibank New Zealand and worked with Citibank/Citigroup for 20 years, holding various senior positions across the UK, USA, Egypt, Australia and Hong Kong. As a Director of the Financial Markets Foundation for Children, he contributes to the promotion of health and welfare of Australian children. He actively engages in the promotion of Australian economic growth, social progress and public policy development through membership of the Australian Bankers’ Association and Business Council of Australia. He has been chair the Australian Bankers’ Association since December 2017. He has been a Director of ANZ Bank New Zealand Limited since 2009, ANZ Holdings (New Zealand) Limited since from 2012 and the Financial Markets Foundation for Children since from 2016. He has been a Member of Australian Bankers’ Association since from 2016 and Business Council of Australia since from 2016.

CEO Compensation
  • Shayne's compensation has been consistent with company performance over the past year.
  • Shayne's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Australia and New Zealand Banking Group management team in years:

2.4
Average Tenure
52.1
Average Age
  • The tenure for the Australia and New Zealand Banking Group management team is about average.
Management Team

Shayne Elliott

TITLE
CEO, Executive Director & Member of Management Board
COMPENSATION
A$6M
AGE
53
TENURE
2.1 yrs

Michelle Jablko

TITLE
Chief Financial Officer
COMPENSATION
A$3M
AGE
44
TENURE
1.6 yrs

Graham Hodges

TITLE
Deputy Chief Executive Officer
COMPENSATION
A$3M
AGE
62

David Hisco

TITLE
CEO of New Zealand and Group Executive of Asia Wealth
COMPENSATION
A$4M
AGE
53

Nigel Murray Williams

TITLE
Chief Risk Officer
COMPENSATION
A$3M
AGE
55
TENURE
6.3 yrs

Mark Whelan

TITLE
Group Executive of Institutional
COMPENSATION
A$4M
AGE
57
TENURE
2 yrs

Fred Ohlsson

TITLE
Group Executive of Australia
COMPENSATION
A$2M
AGE
45
TENURE
2 yrs

Alexis George

TITLE
Group Executive of Wealth Australia
COMPENSATION
A$2M
AGE
53
TENURE
1.2 yrs

Maile Carnegie

TITLE
Group Executive of Digital Banking
COMPENSATION
A$5M
AGE
47
TENURE
1.7 yrs

Craig Sims

TITLE
Group General Manager of Operations & Services
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Australia and New Zealand Banking Group board of directors in years:

4.2
Average Tenure
58.8
Average Age
  • The tenure for the Australia and New Zealand Banking Group board of directors is about average.
Board of Directors

David Gonski

TITLE
Chairman
COMPENSATION
A$825K
AGE
63
TENURE
3.8 yrs

Shayne Elliott

TITLE
CEO, Executive Director & Member of Management Board
COMPENSATION
A$6M
AGE
53
TENURE
2.1 yrs

Paula Dwyer

TITLE
Director
COMPENSATION
A$365K
AGE
56
TENURE
5.8 yrs

Graeme Liebelt

TITLE
Director
COMPENSATION
A$363K
AGE
63
TENURE
4.6 yrs

Ilana Atlas

TITLE
Director
COMPENSATION
A$338K
AGE
62
TENURE
3.4 yrs

Hsien Lee

TITLE
Director
COMPENSATION
A$335K
AGE
59
TENURE
9 yrs

Jane Halton

TITLE
Director
COMPENSATION
A$260K
AGE
57
TENURE
1.3 yrs

JT Macfarlane

TITLE
Director
COMPENSATION
A$319K
AGE
57
TENURE
3.8 yrs

Tony Carter

TITLE
Independent Director of ANZ Bank New Zealand
AGE
59
Recent Insider Trading
  • More shares have been bought than sold by Australia and New Zealand Banking Group insiders in the past 3 months, but not in substantial volumes.
Who owns this company?
X
Management checks
We assess Australia and New Zealand Banking Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Australia and New Zealand Banking Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

External News
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Simply Wall St News

A Look At Australia and New Zealand Banking Group Limited (ASX:ANZ) And The Financial Sector

Below, I will examine the sector growth prospects, as well as evaluate whether Australia and New Zealand Banking Group is lagging or leading its competitors in the industry. … See our latest analysis for Australia and New Zealand Banking Group What’s the catalyst for Australia and New Zealand Banking Group's sector growth? … This growth may make Australia and New Zealand Banking Group a more expensive stock relative to its peers.

Simply Wall St -

Is Australia and New Zealand Banking Group Limited (ASX:ANZ) A Good Choice For Dividend Investors?

Over the past 10 years Australia and New Zealand Banking Group Limited (ASX:ANZ) has returned an average of 6.00% per year from dividend payouts. … See our latest analysis for Australia and New Zealand Banking Group How I analyze a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it paying an annual yield above 75% of dividend payers? … ASX:ANZ Historical Dividend Yield Feb 1st 18 How well does Australia and New Zealand Banking Group fit our criteria?

Simply Wall St -

Why Australia and New Zealand Banking Group Limited’s (ASX:ANZ) Risk Management Makes It More Attractive

A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk Australia and New Zealand Banking Group takes on. … Australia and New Zealand Banking Group’s ability to forecast and provision for its bad loans indicates it has a good understanding of the level of risk it is taking on. … This indicates a prudent level of the bank's safer form of borrowing and a prudent level of risk.Final words With positive measures for all three ratios, Australia and New Zealand Banking Group shows a prudent level of managing its risky assets.

Simply Wall St -

Should You Buy Australia and New Zealand Banking Group Limited (ASX:ANZ)?

Let’s take a look at Australia and New Zealand Banking Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … It’s trading around 17% below my intrinsic value, which means if you buy Australia and New Zealand Banking Group today, you’d be paying a reasonable price for it. … Furthermore, it seems like Australia and New Zealand Banking Group’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued.

Simply Wall St -

Does Australia and New Zealand Banking Group Limited's (ASX:ANZ) PE Ratio Signal A Buying Opportunity?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ANZ Price per share = A$28.8 Earnings per share = A$2.201 ∴ Price-Earnings Ratio = A$28.8 ÷ A$2.201 = 13.1x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Since ANZ's P/E of 13.1x is lower than its industry peers (13.2x), it means that investors are paying less than they should for each dollar of ANZ's earnings.

Simply Wall St -

How Does Australia and New Zealand Banking Group Limited's (ASX:ANZ) Earnings Growth Stack Up Against Industry Performance?

Today I will run you through a basic sense check to gain perspective on how Australia and New Zealand Banking Group is doing by comparing its latest earnings with its long-term trend as well as the performance of its banks industry peers. … Check out our latest analysis for Australia and New Zealand Banking Group Commentary On ANZ's Past Performance I prefer to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … For Australia and New Zealand Banking Group, its latest trailing-twelve-month earnings is A$6,406.0M, which, against the prior year's figure, has increased by 12.21%.

Simply Wall St -

Australia and New Zealand Banking Group Limited (ASX:ANZ): Is It A Good Long Term Opportunity?

The most recent earnings announcement Australia and New Zealand Banking Group Limited's (ASX:ANZ) released in September 2017 suggested that the business experienced a robust tailwind, leading to a double-digit earnings growth of 12.21%. … Below, I've laid out key numbers on how market analysts perceive Australia and New Zealand Banking Group's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … See our latest analysis for Australia and New Zealand Banking Group Market analysts' prospects for the upcoming year seems rather muted, with earnings expanding by a single digit 8.44%.

Simply Wall St -

What Do Analysts Think About The Future Of Australia and New Zealand Banking Group Limited's (ASX:ANZ) Business?

Since Australia and New Zealand Banking Group Limited (ASX:ANZ) released its earnings in September 2017, analysts seem cautiously optimistic, as a 8.56% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 3.38%. … Below is a brief commentary around Australia and New Zealand Banking Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. … View our latest analysis for Australia and New Zealand Banking Group What can we expect from Australia and New Zealand Banking Group in the longer term?

Simply Wall St -

What Makes Australia and New Zealand Banking Group Limited (ASX:ANZ) A Complex Investment?

Check out our latest analysis for Australia and New Zealand Banking Group ASX:ANZ Historical Debt Dec 8th 17 Is ANZ's Leverage Level Appropriate? … While financial companies will always have some leverage for a sufficient capital buffer, Australia and New Zealand Banking Group’s leverage ratio of 15x is very safe and substantially below the maximum limit of 20x. … Compared to the appropriate industry loan to deposit level of 90%, Australia and New Zealand Banking Group’s ratio of over 96.43% is higher which puts the bank in a risky position as it borders negative liquidity disparity between loan and deposit levels.

Simply Wall St -

Australia and New Zealand Banking Group Limited (ASX:ANZ)Is Undervalued By 16%

ASX:ANZ Intrinsic Value Nov 24th 17 The Calculation The central assumption for this model is, the value of the company is how much money it can generate from its current level of equity capital, in excess of the cost of that capital. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (12.14% – 8.62%) * A$20.23 = A$0.76 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = A$0.76 / (8.62% – 2.76%) = A$12.97 Putting this all together, we get the value of ANZ’s share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = A$20.23 + A$12.97 = A$34.61 Relative to the present share price of A$29.07, ANZ is trading in-line with its true value.

Simply Wall St -

Company Info

Map
Description

Australia and New Zealand Banking Group Limited, together with its subsidiaries, provides various banking and financial products and services to individual and business customers. The company’s Australia division offers retail products and services to consumer and private banking customers in Australia through the branch network, mortgage specialists, the contact center, and various self-service channels, such as Internet banking, phone banking, ATMs, Website, and digital banking; and corporate and commercial banking services comprising financial solutions through dedicated managers focusing on privately owned small, medium, and large enterprises, as well as the agricultural business segment. Its Institutional division provides working capital and liquidity solutions, including documentary trade, supply chain financing, cash management solutions, deposits, payments, and clearing; loan products, loan syndication, specialized loan structuring and execution, project and export finance, debt structuring and acquisition finance, structured trade and asset finance, and corporate advisory services; and risk management services on foreign exchange, interest rates, credit, commodities, debt capital markets, and wealth solutions. The company's New Zealand division offers retail and commercial banking and wealth management services to consumer, private banking, and small business customers. Its Wealth Australia division provides life, general, and mortgage insurance; and fund management services. The company's Asia Retail & Pacific division offers general banking and wealth management services; and products and services to retail customers, small to medium-sized enterprises, institutional customers, and governments. It operates in Australia, New Zealand, the Asia Pacific, Europe, and the Americas. The company was founded in 1835 and is headquartered in Melbourne, Australia.

Details
Name: Australia and New Zealand Banking Group Limited
ANZ
Exchange: ASX
Founded: 1835
A$81,697,228,990
2,899,120,972
Website: http://www.anz.com
Address: Australia and New Zealand Banking Group Limited
ANZ Centre Melbourne,
Level 9,
Melbourne,
Victoria, 3008,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ANZ Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1980
OTCPK ANEW.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1980
DB ANB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1980
NZSE ANZ Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1980
OTCPK ANZB.Y SPONSORED ADR Pink Sheets LLC US USD 06. Dec 1994
ASX ANZPC CNV PREF NPV CPS3 DEF SETTLEMENT Australian Securities Exchange AU AUD 29. Sep 2011
DB ANB1 SPONSORED ADR Deutsche Boerse AG DE EUR 06. Dec 1994
ASX ANZPE FRN RVCV SUB 03/2024 AUD100 Australian Securities Exchange AU AUD 01. Apr 2014
Number of employees
Current staff
Staff numbers
44,896
Australia and New Zealand Banking Group employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date
Company Analysis updated: 2018/02/22
Last estimates confirmation: 2018/02/21
Last earnings update: 2017/09/30
Last annual earnings update: 2017/09/30


All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.