A look at 5 NZX banking stocks as RBNZ cast rate hike

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A look at 5 NZX banking stocks as RBNZ cast rate hike

 A look at 5 NZX banking stocks as RBNZ cast rate hike
Image source: Vintage Tone,Shutterstock

Highlights

  • The RBNZ increased its cash rate by 0.25% to 0.75% on Wednesday.
  • Westpac NZ released an independent review report on its risk governance on Thursday.
  • ANZ notified that its shareholders would be asked to give consent on Performance Rights grant to the Company’s CEO.

The RBNZ announced an increase of 25bps in its official cash rate to 0.75% in its monetary policy meeting on 24 November. The hike in rates comes to curb rising inflationary concerns.

Many economists are projecting borrowing costs to increase at least 2% by 2022 and go higher by December 2024.

On this note, let’s walk you through the performance of these 5 NZX banking stocks.

5 NZX banking stocks and their financials

Image source: © 2021 Kalkine Media, Data source- Refinitiv

Westpac Banking Corporation (NZX:WBCASX:WBC)

Westpac NZ released an independent review report on Thursday. The report underscored significant flaws. In March, the RBNZ had told WBC to commission a report addressing concerns related to compliance, risk governance and management practices.

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The report revealed that substantial improvement was needed in WBC’s risk governance as well as underinvestment in risk management abilities.

On 26 November, at the time of writing, WBC was trading at $22.65, down 0.66%.

Australia and New Zealand Banking Group Limited (NZX:ANZASX:ANZ)

ANZ notified on Tuesday that shareholders would be asked to give consent on the performance rights grant to be given to ANZ’s CEO Mr Shayne Elliot in the terms set in the 2021 Meeting notice.

The actual number of Performance Rights planned to be allocated to Mr Elliott is 94,765 for Tranche 1 and 31,588 for Tranche 2, summing to a total allocation of 126,353 Performance Rights.

On 26 November, at the time of writing, ANZ was trading at $28.62, down 0.21%.

Heartland Group Holdings Limited (NZX:HGHASX:HGH)

Heartland issued a performance rights notification to some HGH employees on November 1 as part of its FY22 performance rights strategy.

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In coming year, the Group anticipates a profit of $93 million to $96 million.

On 26 November, at the time of writing, HGH was trading at $2.25, up 0.45%.

Harmoney Corp Limited (NZX:HMY)

Harmoney gave its investor day presentation on 24 November. The Group delivered an outstanding Q1 FY22 quarter despite COVID-19 lockdowns. Harmoney also enhanced its data-driven marketing program after getting listed on the ASX/NZX in November 2020, subsequently increasing customer originations.

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HMY expects a Group pro-forma revenue of at least $92 million and a loan book of nearly $600 million in FY22.

On 26 November, at the time of writing, HMY was trading at $1.96, up 0.51%.

Geneva Finance Limited (NZX:GFL)

Geneva Finance has been asked by the NZ Markets Disciplinary Tribunal to pay a penalty of $65K as well as the cost of the NZX and Tribunal for not releasing its earnings guidance for FY ended 31 March 2021 promptly and without any delay.

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GFL had released its earnings guidance on 15 March 2021, however, it had known the same since 2 March 2021.

On 26 November, at the time of writing, GFL was trading at $0.77, up 2.67%.

Bottom Line

The rise in cash rate will help restrict stimulus to lessen pandemic pain and help the economy recover strongly.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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