ANZ.NZX - Anyone holding?

[RRR]

I don't have an Australian bank account either. ASB did the work form me since I have a nominee account with them - one of the few advantages of having a nominee account.

Disc- Applied for a few

[Onion]

I agree it is definitely advisable to have an Australian bank account when investing in Aus shares - especially if you have quite a few.

The only Aus shares I have dealt with are AMP and WBC - both were quite happy to pay $NZD into a NZ bank account. These are the NZX listed flavour of the shares however. It might be a different story if bought on the ASX directly.

[Bjauck]

ANZ are happy to pay dividends in NZD directly into the NZ bank accounts of their NZ resident shareholders. NZ residents can also make use of any NZD imputation credits attached to dividends too. All the more reason to enable payment for a SPP to be made in NZD, I would have thought...

[macduffy]

[QUOTEI suspect they did not consider the numbers of its (smaller) individual NZ shareholders warranted the effort of enabling payment in NZ dollars. Similarly they did not consider a Rights issue as being fairer to those individual shareholders who could not / would not participate in the capital raising. Indicative of a different attitude compared to the other Australasian banks who undertook rights issues?
][/QUOTE]

In principle I'd agree that renounceable rights issue are fairest to shareholders. Interestingly though, on this occasion it would have resulted in small shareholders paying the same price as the institutional placement, $30.95, rather than the SPP price of $26.50. As the "old" shares traded below $30.95 during the issue period the rights wouldn't have had any value.

ANZ management's claim that a rights issue would have resulted in a lot of small entitlements seems to be correct. Something like 1 for 35, if my maths are anywhere near the mark!

[Tomtom]

ANZ have been very aggressive in lending to business over the last few years....perhaps too aggressive if there's any sort of recession.

There was a little blurb on Reuters the other day explaining:

ANZ has a return on risk weighted assets (RoRW) of 2.84 percent in Australia compared with 0.81 percent in Asia, excluding its minority partnerships which it is looking to exit. The Asian RoRW translates to a level of profitability below the cost of capital, meaning the bank is destroying value.
Its cost-to-income ratio is 44.7 percent, higher than its three main rivals - CBA, National Australia Bank and Westpac - and compared with 36.7 percent at its Australian franchise, reflecting high costs in Asia.

I'd imagine they'll be getting back to their knitting soon.

[Bjauck]

There was a little blurb on Reuters the other day explaining:

I'd imagine they'll be getting back to their knitting soon.

I always thought that their investment in Asian tigers was high risk - nice purring kitty cats bringing in comparatively good returns when times were good but wild cats showing claws and teeth when times became bad. At least for those who participated, the sp is still above the spp price.

[BlackCross]

This seems relevant:

The five macro forces driving bank equity flows
1. Quantitative Easing (QE) initially feels good as low interest rates reduce loan losses
and is expected to stimulate loan growth. After a while, however, ultra-low rates
destroy the profitability of deposit gathering business (eg, look at China now) and
excess liquidity has too flow into some type of lending and it destroys trade financespreads (eg, look at STAN and ANZ). As a lot of Asia enters this bad QE phase the
US is exiting with higher US interest rates to restore banks deposit businesses.
That’s good news for US banks.
2. Tighter global bank regulation and the imposition of mechanical liquidity constraints
slows credit growth. It becomes hard to grow loans faster than high-quality deposit.
Further the looming imposition of the Net Stable Funding Ratio reduces the ability
of banks to mismatch duration of loan assets and funding liabilities. Finally bank
regulatory capital intensity rises. That’s feels very bad for Australia whereas
countries like India and the Philippines still have structurally strong deposit and
high system credit growth.
3. Low system credit growth forces banks to pull cost lever through
outsourcing/offshoring/digitisation/robotics/branch rationalisation. That’s likely
good for high labour cost countries like Australia but ironically cost out initiatives
require investment.
4. Rising bank regulatory capital intensity is bad for bank dividends, particularly in
Australia where regulatory capital arbitrage activity has been high. The opposite
holds true in the US where banks are already re-capitalised and capital generation
will surge given restored deposit businesses, the eventual end of the
litigation/penalty cycle and cost restructuring. In short global PMs should beswitching from still expensive Australian banks to high quality US banks. For
example switch from CBA to Wells Fargo, WBC to JPM etc etc.
5. Currency and interest rates will drive a reversal of global bank equity flows. The
end of the artificial QE drag on the USD is profound as USD investor benchmarks
created significant carry trades for investors.

cut from todays http://ftalphaville.ft.com/marketslive/2015-09-29/

[Tomtom]

I always thought that their investment in Asian tigers was high risk - nice purring kitty cats bringing in comparatively good returns when times were good but wild cats showing claws and teeth when times became bad. At least for those who participated, the sp is still above the spp price.

The more you hear about the Asian operations the higher the level of risk taken appears for that diminishing return. That said the incoming CEO has indicated they're doubling down on the dabbling in Asia.

[peat]

The more you hear about the Asian operations the higher the level of risk taken appears for that diminishing return. That said the incoming CEO has indicated they're doubling down on the dabbling in Asia.

its the growth possibilities of course. Especially when you consider how growth gets harder and harder to find as globalism spreads everywhere.

[Lewylewylewy]

Can anyone explain the sudden drop today? There was upwards preasure that suddenly reversed.

Is that just a response to the NZD?