Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

Australia & New Zealand Bankin / Equity Bottom-Up

* Weak 1H20 Results: Australia and New Zealand Banking Group (ANZ.AU) reported a disappointing set of results, with profits declining AUD 1.2 bn (44.9%) linked period during 1H20. The bulk of the decline can be attributed to an AUD 1.27 bn (31.6%) increase in loss provisions; an AUD 148 mn (16.5%) decline in non-lending fees; and a AUD 542 mn loss in other income  against an AUD 349 mn gain in 2H19 – of which AUD 815 mn during the period was attributed to impairments on its Asian investments; and   * Telegraphing A Capital Raise: ANZ's 1H20 CET1 ratio amounted to 10.76%, declining 59 bp HOH due to higher-than-expected RWA growth and a 7 bp impact thus far from credit migration. ANZ's Board also deferred its 2020 interim dividend. This is a thin capital buffer given the increasing credit risk. Yet, ANZ indicated that it would tolerate falling below 10% for a short period of time.

* Weak 1H20 Results: Australia and New Zealand Banking Group (ANZ.AU) reported a disappointing set of results, with profits declining AUD 1.2 bn (44.9%) linked period during 1H20. The bulk of the decline can be attributed to an AUD 1.27 bn (31.6%) increase in loss provisions; an AUD 148 mn (16.5%) decline in non-lending fees; and a AUD 542 mn loss in other income  against an AUD 349 mn gain in 2H19 – of which AUD 815 mn during the period was attributed to impairments on its Asian investments; and   * Telegraphing A Capital Raise: ANZ's 1H20 CET1 ratio amounted to 10.76%, declining 59 bp HOH due to higher-than-expected RWA growth and a 7 bp impact thus far from credit migration. ANZ's Board also deferred its 2020 interim dividend. This is a thin capital buffer given the increasing credit risk. Yet, ANZ indicated that it would tolerate falling below 10% for a short period of time.

Australia

UBS IQ MSCI Australia Ethical ETF is an exchange-traded fund incorporated in Australia. The Fund aims to replicate the performance of the MSCI Australia ex Tobacco ex Controversial Weapns Index. The Index is designed to measure the performance of the large and mid-capsegments of the Australian market.

Ubs Iq Msci Australia Ethical (UBA AU)

ANZ – The Hole Has Been Dug

* Weak 1H20 Results: Australia and New Zealand Banking Group (ANZ.AU) reported a disappointing set of results, with profits declining AUD 1.2 bn...

Thomas J. Monaco