Cash earnings in the second half will be affected by -$129m in notable items. These relate to remediation charges and restructuring.
Credit Suisse notes the mortgage balance sheet continued to go backwards and so the focus is on a fix. The broker questions what the cost of this is likely to be and how it will impact cost reduction aspirations.
Still, Credit Suisse is wary of being too negative on the bank given its sharp discount to the sector. Neutral rating and $28.50 target retained.
Sector: Banks.
Target price is $28.50.Current Price is $28.41. Difference: $0.09 – (brackets indicate current price is over target). If ANZ meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
