Pfizer Stock – Capital Calls: ANZ deserves some shareholder respect
Concise insights on global finance.
CHEER UP. Shayne Elliott cannot catch a break. Australia and New Zealand Banking Group’s (ANZ.AX) chief executive presided over good first-half results and almost tripled the dividend, yet the stock fell 2% in morning trading. The $62 bln lender is valued at just 16% above book value, the lowest of Australia’s big-four banks. That’s wrong-headed.
Earnings for the six months to the end of March are better than the 9.7% annualised return on equity implies. Strip out one-offs like the 1MDB-sparked write-down on its stake in Malaysia’s AmBank and some loan reserve releases and the return bumps up to 11.3%, besting Westpac’s (WBC.AX) adjusted figure.
ANZ is also leaner, with 54 cents of every dollar of revenue spent on costs, compared to Westpac’s 56 cents – and should get that down to 48 cents next year. Westpac, which trades a third above book, wants to slash expenses by 21% read more , but that’s a tall order and will take time. Elliott deserves more recognition from investors for his efforts. (By Antony Currie)
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Earlier in Capital Calls:
Pfizer‘s vaccine windfall read more
ConocoPhillips ditches Canada, finally read more
Gates split may hit charities more than investors read more
Ferrari lowers bar for next CEO read more
Lufthansa braces for debt mountain fly-by read more
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