MM report their half-year earnings tomorrow with expectations for a relatively tough time but the company’s still expected to announce a 71c fully franked dividend putting the bank on a 5.3% projected 12-month yield. I’m sure if the RBA hike this afternoon many Australians will resent a multi-billion dollar profit from any Australian bank but as investors we welcome it, the ASX and local economy needs a flourishing / strong Banking Sector.
However we are mindful that the local sector has rallied strongly post COVID taking its average valuation (P/E ratio) to the highest level in over 20-years hence MM is prepared to sell into any pops on the upside following this week’s profit numbers.
MM’s ideal medium-term target for ANZ remains above $30
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