ANZ pays 10% in Dividends, page-304

The five danger spots on ANZ’s balance sheet

http://www.theaustralian.com.au/business/businessnow

ABOUT 6 HOURS AGO | 9:49AM | CHRIS KOHLER


Deutsche Bank analysts have cut ANZ to hold from buy after the bank admitted last week that bad debt charges could be $100 million higher than it foretasted just last month.
But the problems for Australia’s third-largest bank go deeper, with analysts saying it’s “impossible to rule out further downside” thanks to its exposure to struggling miners and other questionable areas.
“ANZ finds itself overweight several areas which present concern from an asset quality perspective,” Deutsche Bank’s Andrew Triggs and Anthony Hoo said, including:
1. Resources exposures
2. Asia
3. NZ Dairy
4. WA within the housing portfolio
5. Off balance sheet contingent liabilities.

“Should two or more of these exposures deteriorate simultaneously this could present further downside risk to earnings.
The bank’s attractive dividend isn’t safe either, Mr Triggs and Mr Hoo said.
“In addition, we cannot rule out a cut to the dividend and/or a material restructuring charge as the new CEO alters the vision for ANZ’s Asian footprint.”
Along with the cut to hold from sell, the analysts lowered its 12 month price target to $26 from $28.20, which compared with Thursday’s close of $24.02 for ANZ shares.
The downgrade comes after Credit Suisse analysts took a grim view of last week’s bad debt surprise – read the full story here