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Australia and New Zealand Banking Group Ltd ANZ

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Morningstar’s Analysis

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Taking Some Heat Out of a Surging Mortgage Market Ain't Necessarily a Bad Thing for Australian Banks

Nathan Zaia Equity Analyst

Analyst Note

| Nathan Zaia |

Australian major bank CEOs, the International Monetary Fund, and even the Australian federal treasurer have sounded the alarm about the risks to the financial system due to households taking on more debt. With the Reserve Bank’s cash rate target at 0.1%, it’s never been cheaper to borrow money. With homeowners taking on more debt and sluggish wages growth, the risks to financial stability from an economic shock continue to rise. Hence, we think the Australian Prudential Regulation Authority, or APRA, will introduce macro prudential measures to slow the rise in high debt/income loans in coming months.

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Company Profile

Business Description

ANZ Bank is one of Australia's four major banks and provides retail, business, and institutional banking services to customers in Australia, New Zealand, and Asia-Pacific. The super-regional Asian strategy was de-emphasised, with management focusing on the higher-returning businesses in Australia and New Zealand. ANZ Bank still retains a tilt to its Asia-centric strategy, but is now more balanced, better capitalised and a simpler bank.

Contact
833 Collins Street, Level 9, ANZ Centre
Melbourne, VIC, 3008, Australia
T +61 392735555
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings
Fiscal Year End Sep 30, 2021
Stock Type
Employees 38,579