4 quick ways to assess the ANZ share price

Core Viewpoint - ANZ Banking Group is a leading bank in Australia and New Zealand, primarily generating revenue from mortgages, personal loans, and credit, with a focus on long-term financial success through workplace culture and employee retention [1][2]. Financial Performance - ANZ's net interest margin (NIM) is 1.57%, which is below the ASX banking sector average of 1.78%, indicating lower profitability from lending compared to peers [5]. - The bank earned 78% of its total income from lending last year, emphasizing the importance of NIM in assessing profitability [6]. - ANZ's return on equity (ROE) is 9.3%, slightly below the sector average of 9.35%, reflecting its efficiency in generating profit from shareholder equity [7]. Balance Sheet Strength - ANZ's common equity tier one (CET1) ratio is 12.2%, which is above the sector average, indicating a strong capital buffer to protect against financial instability [8]. Valuation Insights - Using a dividend discount model (DDM), the estimated average valuation of ANZ shares is $35.10, with an adjusted valuation of $35.74 based on forecast dividends, compared to the current share price of $32.94 [11][12].