It has been a disappointing start to the week for the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.
In morning trade, the banking giant's shares were down as much as 5.5% to $25.64.
Since then, the ANZ share price has pared some of these declines but remains down 2.5% to $26.43.
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What is going on with the ANZ share price today?
Investors have been selling down the ANZ share price on Monday in response to the release of its first quarter update.
Although ANZ didn't provide the market with financials, it provided enough colour on its performance to spook investors. This includes an 8-basis points reduction in its net interest margin (NIM) and a poor performance for its Markets business in October. The latter is expected to impact its first half results.
What are analysts saying?
A number of analysts have given their opinion on the bank's update and, as you might have guessed from the ANZ share price, they weren't particularly positive.
Over at UBS, courtesy of The Australian, its analysts note that "the revenue picture is softer than the market has pencilled in."
And unlike rival Westpac Banking Corp (ASX: WBC), which is aiming to cut its cost base materially in the coming years, ANZ doesn't have the cost release opportunities to offset these softer revenues.
The team at Goldman Sachs has also responded to the result. Its analysts appear disappointed with the update but were cautiously optimistic that the remainder of FY 2022 will be stronger.
Goldman commented: "Overall the update appears softer than what is implied by our current 1H22E forecasts but a number of the areas of softness (i.e. NIMs, expenses and Markets income) appear, at this stage, largely contained to the 1Q, with performance for the remainder of FY22 likely more consistent with our expectations."
Both brokers currently have buy ratings on the ANZ share price. Though, that could change tomorrow when they've had enough time to update their financial models.
