The ANZ Group Holdings Ltd (ASX: ANZ) share price is rising again on Tuesday morning.
At the time of writing, the banking giant's shares are up 0.5% to $29.90.
Why is the ANZ share price rising?
Investors have been buying the company's shares this morning following the release of its quarterly update.
That update wasn't as investor-friendly as those released by National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) earlier this month, but it did contain some important information that is impacting the ANZ share price today.
For example, ANZ revealed that customer deposits increased 2% quarter on quarter during the third quarter. This reflects flat Australia Retail and New Zealand division deposits and a 6% lift in Institutional deposits (ex Markets). The latter was driven by higher at-call/operational balances from several large corporate customers.
Also growing during the quarter were the bank's net loans and advances (NLA). They were up 3% or $19 billion thanks to growth in all four major divisions. Australia Retail and Australia Commercial both recorded 2% growth, the New Zealand business reported a 1% lift, and the Institutional business posted a 5% increase. The Institutional growth was due largely to an increase in Markets lending balances and Trade lending.
What about bad debts etc?
The bank revealed that its exposure at default (EAD) increased 1% (+$15 billion). The large drivers of this include $6 billion in residential mortgages and $5 billion in Sovereigns and Financial Institutions.
Its Risk Weighted Assets (RWA) metric was flat with a 4% reduction in credit RWA primarily from mortgage PD model changes, offset by CRWA volume growth, mix and risk changes.
ANZ recorded a total provision charge of $45 million (2 basis points loss rate) in the June quarter. This compares favourably to the consensus estimate of $287 million. ANZ's total provision charge comprises a $27 million individual provision charge (1 basis point loss rate) and an $18 million collective provision charge. The bank's collective provision balance was stable at $4.05 billion.
In addition, its gross impaired assets (GIA) reduced from $1.5 billion to $1.4 billion, the bank's Australian Housing 90+ Days Past Due (DPD) increased 5bps to 84bps, and its Australian consumer cards 90+ DPD remained relatively stable at 47bps. Importantly, both housing and card 90+ DPD remain below 2020 levels.
Overall, investors appear satisfied with these numbers based on the performance of the ANZ share price today.
Speaking of which, it is now up 23% over the past 12 months.
