It seems to be the season of buybacks among the Australian banks – with today’s announcement coming just 10 days after the previous buyback.
At the beginning of this month, it was pegged that Australia's big four banks are likely to return a record AU$10 billion or more of cash to investors over the next two years. Estimates said that the move would be led by Australia’s most valuable company and largest bank – Commonwealth Bank of Australia (ASX:CBA). But that did not happen.
Here are the three buyback announcements that that ASX saw in July 2021:
National Australia Bank (ASX:NAB): One of the big 4 banks of Australia, NAB is third most valued bank by market capitalisation. On Friday, the bank announced a buyback of whopping AU$2.5 billion. The buyback of shares by the bank is likely to begin on 13 August 2021 and will continue till 29 July 2022. However, NAB is not the only Australian bank to have announced a buyback this month – even as it is the largest one till date. On a year-to-date basis, shares of the bank have surged 12.91%.
ANZ Banking Group Ltd (ASX:ANZ): This Melbourne-based bank became the first homegrown bank to announce that it would return up to AU$1.5 billion to its shareholders by way of the buyback. The proposed buyback is likely to begin on 3 August 2021 and will go on all the way till July 2022. On a year-to-date basis, shares of the bank have climbed 20.36%.
Absolute Equity Performance Fund Limited (ASX:AEG): This AU$100-million investment company announced its buyback plans on 12 July 2021. It said that the company will do on-market share buyback for up to 10% of AEG’s issued share capital or approximately 9.2 million ordinary shares within the next 12 months. However, the New South Wales-headquartered company’s shares have dipped 8.94% on a year-to-date basis.