ANZ Banking Group (ANZ:ASX)

Last update - 12 February 2024 By James Woods

Australia and New Zealand Banking Group Limited (ANZ) is a current holding within the ASX Blue Chip portfolio, and this morning has announced a market update, with the update showing revenue is expected to come in line with 2023 quarterly averages.

ANZ reported a relatively strong first quarter market update, recording a common equity Tier 1 ratio of 13.1%, an essential measure of financial stability and regulatory compliance. The bank’s effective management of its assets and liabilities is supported by a decrease in credit risk-weighted assets to A$345.1 billion, down A$3.9 billion quarter-on-quarter.

Revenue for the quarter remained consistent with the first half of 2023 fiscal year quarterly average of A$5.26 billion. Notably, non-markets revenue aligned closely with the A$4.69 billion average, supported by growth in average interest-earning assets. The Institutional Division’s Markets business also reported a strong start to the year, with revenues slightly exceeding the prior half-year’s average of A$575 million.

Investors are reacting positively to the update today, with shares 1.34% higher reaching a 52-week high, outpacing the broader financials sector which is 0.35% higher today. As a reminder, ANZ’s inclusion in the Blue Chip portfolio is based on its dividend yield, which currently sits at 8.31% and its inclusion will depend on how the stock trades between now and the next rebalance date of March1st, 2024.

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