By Jason Fittler

ANZ is currently trading around $23 with a value of around $29.

They had good reported profits for the 2010-year and a strong growth strategy.

Add a 6.1% fully franked yield (Gross yield of 8.7%) expected for the 2011 year this is a good stock to start accumulating (at current prices).

It is not exciting but it is providing a better yield then a term deposit and at the same time solid long-term (3-5 years) growth.

Some highlights from the 2010 result are.
1. Growth in earnings before bad debts was a solid 6% with expenses up 15%, exceeding the 10% uplift in revenue due to acquisitions and further business investment. Customer deposit growth of 11% was impressive and exceeded the more sluggish 5% improvement in lending. Net interest margins were a standout, increasing 16 bases points from 2.31% to 2.47% and importantly exceeding major bank peers by around 20 bases points.
2. A final dividend of 74cps (ff) took full-year dividends to 126cps, up an impressive 24% on FY09.

We are positive on ANZ and the FY10 result supports our position with a cracking 33% uplift in cash profits.

The key earnings drivers are pointing in the right direction and we expect to see further solid growth in earnings and dividends over the next few years at least.

For more information on ANZ please contact us on 07 4771 4577.