ANZ's 3Q Costs Lower Risks Around Guidance

Dow Jones
08/13

0045 GMT - ANZ's 3Q update is seen by its bull at Citi as reducing risks around the Australian bank's annual guidance. Analyst Thomas Strong points out that June-quarter costs of A$2.785 billion include A$100 million of New Zealand-related provisions, for which consensus had not accounted. Excluding this unexpected item, Strong says costs fell by 3%. He tells clients in a note that management's reiterated guidance points to "decent" on-quarter cost growth for the three months through September. Citi has a last-published buy rating on the stock and a target price of 39.25 Australian dollars. Shares are up 3.2% at A$37.57.

 

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