I tend to disagree with a fall in ANZ - the bank has under...

I tend to disagree with a fall in ANZ - the bank has under McFarlaine, delivered consistancy in Div's and cost reductions whilst his Asian stratergy has been placed on the back burner for the moment.

The interesting issue for me is the growth in deposits in NZ up 7% and the fact that any intergration issues with the merger now must be disregarded.

Taking advantage of the $13 rights issue - a reward to shareholders that did not include an income tax component ( like a buy back off market) has seen investors sitting on a capital gain of $7.76 per share - an excellent result. Add to that a 51c divy and its cookies and cream for ANZ shareholders.

The ANZ however trades at a P/E discount to the banking sector - which is remarkable given that ANZ has won awards for capital efficiancy and customer service. It recently beat St George on Customer satisfaction - a fact that St George had used to diffrentiate itself in the market - and one of the reasons why STG has traded at a premium above ANZ. ( remember its bank manager BBQ ad )

No problems like NAB and a sence of direction that is lacking at WBC make ANZ a core long term investment.

I have one negative - ANZ need to brief the market on its future direction post intergration in NZ and capital controls in Oz - will they go to INDO full on or China - they have the experiance or will they Take a tilt at and AXA or AMP ?

( an overseas bank ( HBOS / HSBC or Citi ) would love to get a foot hold in Australia - ANZ would be a jewel...

anyhow thats my view.


Singas


I have ANZ shares - not a offer to invest - Read the Red.