A seriously soggy ANZ

Wednesday, 31 October 2018

We’ll see this morning whether the bank short squeeze has any legs because the ANZ result is seriously soggy:

EPS down. ROE down. Net interest margin down 12bps to 1.87. Costs up despite big head count reductions. Fantastically low credit impairments that are going to climb. A very uninspiring strategy of increasing exposure to the bursting bubble to boot.

Yes, capital is up though the international comparison is bollocks as usual. Recent rate hikes are yet to flow through to earnings but it looks like the pressure to hike rates has not been resolved, either.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.