ANZ has reported a sector-leading capital position in its third quarter update, Macquarie observes, which provides scope for additional buybacks in FY19/20. The bank also recorded its lowest impairment charge since 2014.
Macquarie suspects, if current conditions persist, credit quality will continue to improve, which may provide scope for upgrades in FY19. Outperform rating and $30.50 target.
Target price is $30.50.Current Price is $29.75. Difference: $0.75 – (brackets indicate current price is over target). If ANZ meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).