Business Summary Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. ANZ operates in Australia, New Zealand, Asia Pacific region, the United Kingdom and the United States. ANZ main business divisions consist of Retail, Corporate and Commercial Banking, Global Wealth and International and Institutional Banking Division. Latest Research Keeping the fingers on the fretboard ANZ has announced the sale of OnePath Life NZ Limited to Cigna Corporation for NZ$700m. This represents a slight premium over embedded value, a good outcome for the bank given recent transaction discounts for larger ticket items, and is expected to realise a gain on sale of ~NZ$50m. As a result, the Group’s CET1 ratio is expected to increase by ~15bp. The transaction includes a 20-year distribution alliance whereby Cigna will provide insurance solutions for ANZ bank customers. However, ANZ will retain its New Zealand investment management business. For more information see research 31 May 2018. GICS - Banks Australia & New Zealand Banking Group Ltd ASX Code: ANZ Price: $26.73 12 Mth Target Price: $30.20 Rating: Buy Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is general investment advice only and does not constitute advice to any person. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 8 June 2018 $77,365m 2,894.3m $30.80 $26.11 Rating Rating 12 Mth Target Price Capital Gain Gross Yield Implied Total Return Buy $30.20 13.0% 8.8% 21.8% Investment Fundamentals FYE 30 Sep 2017A 2018F 2019F 2020F Profit $m 6,938.0 6,108.4 6,862.3 7,122.1 Profit (norm)* $m 6,938.0 6,108.4 6,862.3 7,122.1 EPS* ¢ 237.1 209.2 235.1 242.9 EPS Growth % 17.0 -11.8 12.4 3.3 P/E* x 11.3 12.8 11.4 11.0 P/E Relative % 0.0 0.0 0.0 0.0 DPS ¢ 160.0 161.0 165.0 171.0 Yield % 6.0 6.0 6.2 6.4 Franking % 100.0 100.0 100.0 100.0 * Adjusted for goodwill and unusual items Source: Based on Bell Potter estimates Share Price Chart Total Return on $10,000 Investment
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Australia & New Zealand Banking Group Ltd ASX Code: ANZ ... · Business Summary Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products
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Business SummaryAustralia and New Zealand Banking Group Limited (ANZ) provides a range ofbanking and financial products and services to retail, small business,corporate and institutional clients. ANZ operates in Australia, New Zealand,Asia Pacific region, the United Kingdom and the United States. ANZ mainbusiness divisions consist of Retail, Corporate and Commercial Banking,Global Wealth and International and Institutional Banking Division.
Latest ResearchKeeping the fingers on the fretboard
ANZ has announced the sale of OnePath Life NZ Limited to CignaCorporation for NZ$700m. This represents a slight premium overembedded value, a good outcome for the bank given recent transactiondiscounts for larger ticket items, and is expected to realise a gain on saleof ~NZ$50m. As a result, the Group’s CET1 ratio is expected to increaseby ~15bp. The transaction includes a 20-year distribution alliance wherebyCigna will provide insurance solutions for ANZ bank customers. However,ANZ will
retain its New Zealand investment management business.
Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.
Snapshot
DateMarket Cap.Shares on issue12 Month High12 Month Low
DPS ¢ 160.0 161.0 165.0 171.0Yield % 6.0 6.0 6.2 6.4Franking % 100.0 100.0 100.0 100.0* Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimates
Share Price Chart
Total Return on $10,000 Investment
Profit & Loss ($M)2013A 2014A 2015A 2016A 2017A
Net Interest Income 12,758 13,810 14,616 15,095 14,958Provision for Doubt. Debts -1,188 -986 -1,179 -1,929 -1,198Non Interest Income 5,688 6,244 6,455 5,434 5,315Total Operating Income 17,258 19,068 19,892 18,600 19,075Non Interest Expense -8,159 -8,281 -8,732 -10,355 -9,878Profit Before Tax 9,099 10,787 11,160 8,245 9,197Income Tax -3,043 -3,350 -3,328 -2,400 -3,246Outside Equity Int. -10 -12 -14 -11 -15Profit after Tax 6,046 7,425 7,818 5,834 5,936Significant Items after Tax 226 -154 -325 -125 470Reported Profit after Tax 6,272 7,271 7,493 5,709 6,406Preferred Dividends -6 -6 -1 -- --
* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.
Principals & DirectorsPrincipals
Company Secretary Mr John William PriestleyMr Richard (Bob) Bartholomew SantamariaMr Simon Pordage
Directors
Mr David Michael Gonski(Non-Executive Director,Non-ExecutiveChairman)Ms Ilana Rachel Atlas(Non-Executive Director)Ms Alexis George(Group Executive - Wealth Australia,Deputy ChiefExecutive Officer)Mr Hsien Yang Lee(Non-Executive Director)Mr Graeme Richard Liebelt(Non-Executive Director)Ms Paula Jane Dwyer(Non-Executive Director)Mr John Thomas Macfarlane(Non-Executive Director)Mr Shayne Cary Elliott(Chief Executive Officer,Executive Director)Ms Sarah Jane Halton(Non-Executive Director)Sir John Phillip Key(Non-Executive Director)
To access further Research or for information regarding our recommendations and ratings please seewww.bellpotter.com.au