It has been a disappointing start to the week for the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.
In morning trade, the banking giant’s shares were down as much as 5.5% to $25.64.
Since then, the ANZ share price has pared some of these declines but remains down 2.5% to $26.43.
What is going on with the ANZ share price today?
Investors have been selling down the ANZ share price on Monday in response to the release of its first quarter update.
Although ANZ didn’t provide the market with financials, it provided enough colour on its performance to spook investors. This includes an 8-basis points reduction in its net interest margin (NIM) and a poor performance for its Markets business in October. The latter is expected to impact its first half results.
What are analysts saying?
A number of analysts have given their opinion on the bank’s update and, as you might have guessed from the ANZ share price, they weren’t particularly positive.
Over at UBS, courtesy of The Australian, its analysts note that “the revenue picture is softer than the market has pencilled in.”
And unlike rival Westpac Banking Corp (ASX: WBC), which is aiming to cut its cost base materially in the coming years, ANZ doesn’t have the cost release opportunities to offset these softer revenues.
The team at Goldman Sachs has also responded to the result. Its analysts appear disappointed with the update but were cautiously optimistic that the remainder of FY 2022 will be stronger.
Goldman commented: “Overall the update appears softer than what is implied by our current 1H22E forecasts but a number of the areas of softness (i.e. NIMs, expenses and Markets income) appear, at this stage, largely contained to the 1Q, with performance for the remainder of FY22 likely more consistent with our expectations.”
Both brokers currently have buy ratings on the ANZ share price. Though, that could change tomorrow when they’ve had enough time to update their financial models.
The post ANZ (ASX:ANZ) share price sinks as top analysts respond to its Q1 update appeared first on The Motley Fool Australia.
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 over 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 January 13th 2022
More reading
- ASX 200 (ASX:XJO) midday update: ANZ disappoints, Magellan shares crushed
- ANZ (ASX:ANZ) share price on watch following first quarter update
- 5 things to watch on the ASX 200 on Monday
- Hunting for ASX shares? Experts say to avoid this sector in 2022
- 2 buy-rated ASX dividend shares with attractive fully franked yields
Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. 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/0per62T
Leave a Reply