The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be one to watch later this month.
On 28 October, the banking giant is scheduled to release its full year results for FY 2021.
Ahead of the release, I thought I would look to see what the market is expecting the bank.
What should you expect from ANZ in FY 2021?
According to a note out of Bell Potter, its analysts are expecting ANZ to report a big rebound in its profits in FY 2021.
The broker is forecasting statutory profit of $5.78 billion and a cash profit of $5.82 billion for the 12 months. This represents an increase of 61.6% and 55%, respectively, over the prior corresponding period.
From this, Bell Potter is expecting a fully franked final dividend of 70 cents per share. This will bring its full year dividend to $1.40 per share, which is more than double the COVID-impacted dividend of FY 2020.
Bell Potter commented: “Overall changes include lower net interest income (2% lower, mainly due to lower volumes and despite a 1bp increase in NIM in 2H21 from good NIM management) and lower other banking income (18% lower mainly from institutional banking although there was a gain of around 12% in 2H21) offset by lower operating expenses (the bank continues to manage costs relatively well, down from $4.78bn in 2H20 to $4.48bn in 1H21 and a forecast of $4.23bn in 2H21) plus a benefit in credit impairment charge in the first half of $0.49bn and back to an expense of $74m in 2H21 (as the industry further normalises).”
Is the ANZ share price good value?
Bell Potter sees a lot of value in the ANZ share price at the current level. Its analysts have a buy rating and $31.00 price target on its shares.
Based on the latest ANZ share price of $27.76, this implies potential upside of almost 12% over the next 12 months.
And that doesn’t include dividends. Bell Potter expects ANZ to lift its dividend to $1.45 per share in FY 2022. This represents an attractive 5.2% dividend yield, bringing the total potential return to approximately 17%.
Should you invest $1,000 in ANZ right now?
Before you consider ANZ, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- What happened for the ANZ share price in the FY22 first quarter?
- ASX 200 bank shares fall flat amid flurry of new regulations
- Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
- 5 things to watch on the ASX 200 on Monday
- How does the Westpac (ASX:WBC) dividend compare to the banking sector?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3oMM4wa