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:
a woman

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.

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

Warren Buffett
Share Market News

Could these Australian fund managers be the next Warren Buffett?

Buffett is widely regarded the world's most successful investor.

Read more »

Man with rocket wings which have flames coming out of them.
Broker Notes

These ASX 200 shares could rise 40%+

Big returns could be on offer from these shares according to analysts.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Analysts say these ASX shares are top buys in June

Brokers are urging investors to buy these shares. Let's find out why.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a high note this Friday.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

These shares are ending the week in the red. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 shares leading the charge higher this week

Investors have been piling into these four ASX 200 shares this week. But why?

Read more »

Woman and man calculating a dividend yield.
REITs

What price target does Macquarie have on Goodman Group shares?

Goodman Group posted an interesting set of numbers in Q3. Here's Macquarie's take.

Read more »