Australia and New Zealand Banking Group (ASX: ANZ) is still my favourite big bank stock.
Its unique focus on Asia and highly profitable operations in Australia afford it a healthy blend of reliability and growth potential.
However, ANZ's New Zealand operations are also noteworthy.
Here are 10 facts ANZ shareholders likely wouldn't know about their bank's New Zealand operations.
- New Zealand contributes 18% to group revenue and 21% of group net profit after tax (NPAT)
- The population of New Zealand is expected to grow by roughly 10% between now and 2030, providing tailwinds for the ANZ
- ANZ controls 31% market share of all net loans and advances (NLA) in New Zealand
- It holds 30.6% market share of deposits
- 9% of credit cards; and
- 2% of mortgages
- Its total number of branches has decreased from 315 in the 2010 financial year to just 233 in 2014
- Over the same period, its return on assets (ROA) has jumped from 0.71% to 1.29%
- Its cost to income ratio has dropped from 48% to 39%
- Finally, NPAT from New Zealand has grown at 17% compound since 2010
Is it time to buy ANZ shares?
Each of Australia's big four banks offers healthy exposure to the New Zealand economy. However, ANZ is the only bank actively seeking to become a 'Super Regional' bank by expanding throughout the Asia Pacific markets.
However, whilst the strategy appears promising, currently accounting for over 20% of group profit, the valuation of ANZ's shares has become quite rich. Therefore, although it is currently being tipped to pay an increased dividend in the year ahead, this Fool suggests keeping the bank's shares on your watchlist until their valuation becomes more appealing for buyers.
