ANZ Group: The Cheapest Of Australia's Big Four Banks

Mark Dockray
1.87K Followers
(8min)

Summary

  • ANZ Group has been one of the weaker performers among the Big Four Australian banks since my last update back in 2022.
  • Interest margins and technology-driven costs have weighed on its efficiency, driving a circa 330bps expansion in its consolidated cost/income ratio in that time.
  • As a result of this, ANZ is now the cheapest of the Big Four, trading at a significant discount on price-to-net-tangible-assets, price-to-earnings and dividend yield.

Australia and new zealand anz bank at Martin Place branch in center of Sydney.

Bundit Minramun/iStock Editorial via Getty Images

Margin pressure from a ferocious retail banking market and costly technology spending is not making life easy for Australia's ANZ Group (OTCPK:ANZGY)(OTCPK:ANZGF). Not only has that lumbered ANZ with

This article was written by

1.87K Followers
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ANZGY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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