ANZ.NZX - Anyone holding?

[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!

[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/

[Lewylewylewy]

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

Is that just a response to the NZD?

[Bobdn]

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

Is that just a response to the NZD?

If you're in the DRP it's not all bad news, infact the lower the better for the 10 days from 13 November.

The Acquisition Price to be used in determining the number of shares to be provided under the DRP and BOP in connection with the 2015 Final Dividend will be the arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold on the ASX during the ten trading days commencing 13 November 2015, and then rounded to the nearest whole cent. - See more at: https://www.shareholder.anz.com/page....RUkgu4x2.dpuf

[Joshuatree]

Have a read of KW's Big Short thread

[Lewylewylewy]

Thanks. Essentially the banks look like there's no room to grow, despite performing well and also there are fears they could drop...

But it sure does look like a good buy at the moment, at least in terms or a long term investment imo

[huxley]

Don't worry Morningstar still rates it a buy

[Bobdn]

Yes, hopefully a good buy. Bought a further 600 last week before it went xd at 28.20. Up 3% today and a 95 cent per share dividend being paid out in December.

Let's hope the NZD reteats back to 80 cents AUS. Amazing to think that ANZ is bigger than all the companies on the NZX combined.

[huxley]

Yes, hopefully a good buy. Bought a further 600 last week before it went xd at 28.20. Up 3% today and a 95 cent per share dividend being paid out in December.

Let's hope the NZD reteats back to 80 cents AUS. Amazing to think that ANZ is bigger than all the companies on the NZX combined.

Agreed, I actually did pick up a few before it went ex dividend as well - seems like a good stock to be long on and buy on weakness over time...