Cash earnings in the first half were slightly above Citi’s estimates. The broker notes a large number of one-off items relating to divestments obscured the underlying trends. The CET1 ratio is growing rapidly and now at 11%.
The buyback program has begun and Citi expects a combination of dividend increases and buybacks to continue from FY19. Buy rating maintained. Target is raised to $30.50 from $30.00.
Target price is $30.50.Current Price is $27.47. Difference: $3.03 – (brackets indicate current price is over target). If ANZ meets the Citi target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).