UBS found the 1Q tarding update by ANZ Bank weaker-than-expected on the net interest margin, the operational income and cost control, while credit quality proved a positive surprise.
The broker suggests market expectations cannot be met after these numbers but also that the revenue picture looks softer too.
The bank is guiding that Q2 net interest margin (NIM) pressures will moderate.
Price target $30. Buy. UBS’s estimates are below market consensus.
Sector: Banks.
Target price is $30.00.Current Price is $26.57. Difference: $3.43 – (brackets indicate current price is over target). If ANZ meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
