Credit Suisse points out ANZ's recent announcement, that it may have been too conservative in its approach to mortgage lending, has been interpreted by some that this is an inflection point for growth.
It appears ANZ Bank's FY18 report slightly missed Morgans' expectations, but the broker is prepared to make the call this bank's rough patch is nearing an end. The next couple of years should be "smoother", if Morgans' assessment can be relied upon.
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.
The bank has sold its NZ life insurance business to Cigna for NZ$700m. Morgan Stanley notes ANZ had not publicly stated the business was for sale, although believes the decision is consistent with the strategy to exit low-return and non-core businesses.