Could ANZ shares cash in on the recent international bank collapses?

ANZ Group Holdings Ltd (ASX: ANZ) shares have slipped into the red in the last month, but could better days be ahead?

ANZ shares have descended 3% since market close on 3 March and are currently fetching $23.11. In today’s trade, ANZ shares are falling 0.43%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.048% at last look.

Let’s take a look at the outlook for the ANZ share price.

Are recent bank collapses overseas a positive?

Global markets were rocked in March by news of bank collapses, including California’s Silicon Valley Bank. Switzerland bank Credit Suisse also revealed it is facing liquidity issues including “significant deposit and net asset outflows”.

However, despite this news overseas, ANZ is in fact receiving more requests from depositors due to its double-A rating.

ANZ North Asia financial institutions head Annabel Squier, commenting in the Australian Financial Review, said:

We’ve seen a lot of requests come to us in the last couple of weeks because of what’s happened in America and Europe – saying you’re double-A rated, you’re regulated by one of the strictest regulators globally, we want to put our deposits with you.

The likes of Bank of America, JP Morgan, Citibank are flooded with deposits and other regional banks, which is why we’re getting a lot of calls from companies.

ANZ has recently been recommended as a “buy” by the team at Citi with a $29.25 price target. Citi analysts believe ANZ’s earnings are ahead of expectations.

Meanwhile, ANZ has responded to the Australian Competition and Consumer Commission (ACCC)’s preliminary views on its potential acquisition of Suncorp Group Ltd (ASX: SUN).

As my Foolish colleague James reported this morning, the ACCC is seeking more submissions from stakeholders before making a final decision on 12 June.

ANZ today said it welcomes the ACCC’s statement of preliminary views. CEO Shayne Elliot said:

We welcome the detailed work the ACCC is undertaking following ANZ’s application, and we will examine their preliminary views in detail and respond to the matters raised.

When we announced the acquisition, we acknowledged that there would be questions from Government and regulators about the competition aspects of this transaction, and we welcomed that scrutiny. We welcome the further community consultation that will now occur.

ANZ share price snapshot

ANZ shares have slid 14% in the last year but they have climbed 0.61% year to date.

ANZ has a market capitalisation of about $69 billion based on the current share price.

The post Could ANZ shares cash in on the recent international bank collapses? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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