The banks have helped drag the market out of the depths of despair in April with ANZ up over +20% year-to-date, plus it paid a juicy fully franked dividend along the way – surprisingly CBA is now the laggard, only up around 10% this year. The ASX’s 4th largest bank is still yielding 4.9%, mostly franked, and remains cheap relative to the “rich” sector. With a new CEO on board, following a period of back-to-back failures, the performance of the stock will be determined by the market’s belief in Mr Matos’ vision and ability to execute – next Monday’s strategy day will be the first major hurdle for the incoming Portuguese boss.
This morning, Goldman Sachs reinstated coverage across the banking sector with the following calls: Buy ANZ, Hold WBC, Sell CBA & NAB – very much aligned with MM’s thinking.
- We like ANZ moving forward, but another $2 correction wouldn’t surprise us: we hold ANZ in our Active Growth and Income Portfolios.
MM is cautiously bullish towards ANZ into 2026
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