Australian and New Zealand Banking Group Limited (ASX: ANZ) is witnessing the negative momentum on November 12, 2018 primarily because its shares are going ex-dividend. The bank has announced a final dividend of 80 cents per share which is fully franked. As a result, in FY 2018, it has declared 160 cents of dividends. As we write, the share price of ANZ is trading at A$26.150 per share which implies the fall of 3.612% intraday. The stock is trading towards the lower end.
How Australia and New Zealand Bank Performed in 2018 Amid Challenges?
The market participants have not remained optimistic about the performance of the banks primarily because of the challenging environment they were witnessing in 2018 particularly regulatory. According to the market trackers, the stricter lending conditions because of the regulatory pressures would continue to weigh on the banks’ performance. Not only lower credit growth would impact the banks’ performance, but the slump in the housing prices would also add to the expected negative momentum. Australia and New Zealand Banking Group Limited ended FY 2018 with a statutory profit of $6.4 billion and, as per the management, they have adopted disciplined growth in order to support the balance sheet growth. They also stated that the actions which the bank has adopted since 2016 in order to streamline the business as well as towards costs reduction, has well-positioned the major bank to face the challenges which are being faced by the broader industry.
The retail banking in the Australia region did witness some negative impacts because of the subdued housing growth as well as lower borrowing capacity. However, the bank remained committed to their own disciplined approach in regard to the home loan growth. In FY 2018, the bank did witness a rise in the expenses mainly because of the elevated remediation as well as customer compensation expenses in Australia. The management of Australia and New Zealand Banking Group Limited stated that they are dealing with the Royal Commission constructively and are in the process of taking actions so that the changes can be done. The bank is ready to make deployments which could help it to earn respect as well as the trust of the community as well as customers.
Australia and New Zealand Banking Group Limited is primarily focused on the four strategic priorities. First, the bank has its primary focus on reducing the expenses as well as risks by filtering out the complexity as well as by exiting those businesses which generate lower returns and non-core businesses. Secondly, the bank plans to focus on the areas where it can witness robust growth momentum. The bank plans to make the process of buying as well as owning the home or the activities related to the small businesses in New Zealand and Australia easier.
Third, Australia and New Zealand Banking Group Limited plans to develop a stronger sense of core purpose, and it also plans to make investments in the leaders which could help the bank in facing the changing environment. Finally, the bank also plans to come up with more engaging as well as convenient banking solutions.
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