Macquarie lowers FY22 EPS forecasts for the major banks by around -2-4%, with a smaller impact on FY23-24, largely driven by mortgage margins changes. This comes after substantial switching by customers from variable to fixed rates, explains the analyst.
The broker points out a lack of repricing and significant competitive pressures in fixed-rate also contributed to a margin squeeze.
ANZ Bank is expected to benefit from an underweight position in mortgages and should deliver better revenue growth in FY22, estimates Macquarie. The $30 target price and Outperform rating are maintained.
Sector: Banks.
Target price is $30.00.Current Price is $27.59. Difference: $2.41 – (brackets indicate current price is over target). If ANZ meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
