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Are ANZ and BOQ heading north?

Team Veye | 26 Mar 2018 ASX - ANZ, BOQ
Are ANZ and BOQ heading north?

Australia and New Zealand Banking Group 

On 11th Jan’18, ANZ banking group terminated its agreement to sell UDC Finance to HNA Group in accordance with contracted timeframe followed by a recent announcement on 20th Mar’18 that it will explore the possibility of an initial public offering (IPO) of ordinary shares in UDC Finance as part of a range of strategic options for UDC’s future. On 28th Feb’18, the bank announced the joining of Sir John Key in the ANZ Board. Sir John was New Zealand’s 38th Prime Minister serving from 2008 until 2016. After retiring from a distinguished career in politics, Sir John was appointed Chairman of ANZ’s New Zealand subsidiary in January after joining the Board in October 2017. On 14th Feb’18, the bank had announced finalizing the sale of six asian retail and wealth businesses.‍ ANZ also finalised sale of its retail business in Vietnam to Shinhan bank at end of 2017.  On the same day, ANZ priced first EUR 750m SDG bond to fund ANZ loans and expenditures. This was a ‍five year fixed rate bond priced at spread of 15 basis points over swap rate, with yield of 0.643%​.(Facts and Figures Source – Reuters.com)

 

Financials

The Bank offers a decent fully-franked dividend yield of 5.78% against a sector average of only 1.70%. The Bank’s EPS stands at 233.29. The P/E ratio is 13.37% against the sector average of 20.25%.  The company’s Debt-to-Equity ratio is only 225.36% against the sector average of 57.16%.  The bank has a Share Volume of 2.91b. The EBITD margin is 43.54. The stock price of the bank is hovering around its current resistance level of $27.50 and stands at $27.70.

 

Veye’ Take

We give a “Hold” to “Australia and New Zealand Banking Group” at the current price of $27.70

 

Bank of Queensland Ltd 

The bank will be declaring its H1 FY2018 results on 17th Apr’18. On 26th Feb’18, the bank announced that its intends to redeem all outstanding convertible preference shares on optional conversion/redemption date of 16th April 2018 and the redemption price will be $102.4433 per cps followed by another recent announcement earlier this month on 5th Mar’18 stating that the Convertible Preference Shares of Bank of Queensland Limited (the “Company”) will be suspended from quotation immediately, at the request of the Company, pending their early conversion or redemption.

However, the Company’s fully paid ordinary shares (ASX Code: BOQ) will not be affected by this suspension. On 26th Feb’18, the bank announced that it had reached a settlement in relation to class action initiated by Petersen Superannuation Fund Pty. If the court approves settlement, Petersen class action settlement will not have material impact on co’s statutory profit for FY2018.

 

Financials

The Bank offers a decent fully-franked dividend yield of 6.74% against a sector average of only 1.70%. The Bank’s EPS stands at 97.09. The P/E ratio is 13.40% against the sector average of 20.25%.  The company’s Debt-to-Equity ratio is only 254.78% against the sector average of 57.16%.  The bank has a Share Volume of 392.59m. The EBITD margin is 43.54. The stock price of the bank has slipped 17% in the last 6 months making it the right time to buy it at a bargain price.

 

Veye’ Take

We give a “Hold” to “Bank of Queensland Ltd” at the current price of $11.28

 

Disclaimer

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