ANZ +1.32%: Reported FY24 results this morning that were okay, good relative to the challenges in the mortgage market earlier in the year, but probably on the weaker side relative to where the shares are trading.
- Revenue of $20.8bn, down 2% but broadly inline with expectations.
- Cash earnings of $6,725m, about ~1% below consensus and down ~8% YoY.
- EPS of $2.18 against $2.23 exp.
- 2H24 Dividend of 83cps, inline with expectations
At a headline level, and after stripping out the noise from the SUN acquisition, the result was close to expectations, though they did report a very low bad debt charge and a higher markets income which implies the result was a little softer than peers on an underlying basis. That said, CEO Shayne Elliot had some good news to talk about with the SUN acquisition and their two-pronged technology platform, ANZ Plus for retail and small business customers, and ANZ Transactive Global for mid-sized businesses to the biggest multinationals.
This development has taken a long time and cost a lot of money, but it’s here and it’s starting to deliver, and with additional scale (via SUN), and a strong foundation for ANZ to roll out technology like artificial intelligence, the base is now set, and ANZ (according to Elliot), is about to deliver.
- Optimistic commentary from ANZ today about what comes next – we liked the optimism.
MM remains long ANZ
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