3 key takeaways from the ANZ annual general meeting

The Australia and New Zealand Banking GrpLtd (ASX:ANZ) share price is pushing higher today following its AGM update…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a positive performer on the day of its annual general meeting.

In afternoon trade the banking giant's shares are up 2% to $23.41.

This latest gain means the ANZ share price is now up an impressive 35% since the start of October.

a woman

What happened at the annual general meeting?

At the event, ANZ's Chairman and CEO provided investors with a thorough breakdown of the company's performance over the last 12 months and their expectations for the future.

Three key takeaways from the event are as follows:

2020 has been a difficult year.

There's no getting away from the fact that 2020 has been a difficult year for the bank because of the COVID-19 pandemic.

Speaking about its results in FY 2020, CEO Shayne Elliott commented: "It was of course COVID that had the most material impact on our profitability. With operating profit before these provisions broadly flat, the largest driver of the profit reduction was setting aside a further $1.7bn for possible future losses."

ANZ's underlying performance has been positive.

With COVID provisions dominating the bank's results, it actually overshadowed a positive underlying performance by ANZ this year.

Mr Elliott explained: "…our diversified business delivered a decent revenue performance. In Australia, we achieved six-months of consecutive market share growth in our targeted owner-occupier market, while deposit growth remained very strong. We also introduced new processes to help customers move to online banking."

"The work we have spoken about for several years to simplify and refocus the Institutional business proved massively beneficial. In fact, our institutional bank outperformed and I'm proud of its transformation. It demonstrates the value of a well-balanced, diversified portfolio in a market defined by high levels of liquidity, low interest rates and geopolitical tensions." He added.

COVID-19 has changed things for the better.

The CEO also spoke about the future and advised that he is looking at COVID-19 differently.

He said: "There is another way of thinking about a crisis – it is of course just a period of rapid change. In fact, many of the great companies we think of today, companies like Microsoft, Apple, and Amazon forged their success in periods of great dislocation. This is because people in a time of crisis have new needs and good companies figure out how to provide for them."

"And this is where my focus and the focus of my team is. We stand ready to take advantage of the opportunities that will arise. We are supporting our best customers and will emerge with stronger relationships than we started. We will continue to reshape our portfolio to produce a more balanced, lower risk business that generates decent, more predictable returns. We are going to continue to make the bank simpler and easier to manage," he added.

Mr Elliott pointed to its recent partnership with global payments leader Worldline as a great example of this.

He notes that this partnership will provide its "small business customers with access to the world's best technology, allow them to get paid, quickly, safely and at low cost."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Frustrated and shocked business woman reading bad news online from phone.
Share Market News

5 things to watch on the ASX 200 on Friday

It looks set to be a tough finish to the week for Aussie investors.

Read more »

person sitting at outdoor table looking at mobile phone and credit card.
Broker Notes

What is Bell Potter's latest outlook for Kogan shares?

Here's the updated guidance out of the broker.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Ord Minnett says this ASX 200 stock can rise 40%

Big returns could be on offer with this top stock.

Read more »

comical investor reading documents and surrounded by calculators
Broker Notes

6 ASX shares at 52-week lows: Buy, hold, or sell?

The market finished lower on Thursday as the conflict in Iran dragged on.

Read more »

A girl sits on her bed in her room while using laptop and listening to headphones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for the markets this Thursday.

Read more »

Man going down a red arrow, symbolising a sliding share price.
Record Lows

This ASX retail giant's shares just hit a record low. What's going on?

Ongoing margin pressure keeps Endeavour shares near record lows.

Read more »

A wine technician in overalls holds a glass of red wine up to the light and studies it.
52-Week Lows

Treasury Wine shares just tumbled to 14-year lows. Screaming bargain or falling knife?

Trading at 14-year lows, are Treasury Wine shares poised for a rebound?

Read more »

A worried woman sits at her computer with her hands clutched at the bottom of her face.
Share Fallers

These 3 ASX 200 shares have hit fresh multi-year lows: Buy, sell or hold?

One of these stocks has crashed over 50% over the past year alone.

Read more »