Shares of Australia and New Zealand Banking Group Ltd [ASX:ANZ] are currently trading at $29.43, an increase of 1.45% for the day.
Why did ANZ shares rise today?
Yesterday the banking giant announced it has entered a non-binding agreement to transfer a partial economic interest of its Pensions and Investments (P&I) business, as well as the legal ownership of its Aligned Dealer Groups (ADG) to IOOF from 1 October 2018.
Well this might be one small contributing factor to the rising share price, and it does appear that ANZ is finding its feet somewhat. But, investors should consider the potential blows are still to come from the royal banking commission and other investigations.
ANZ originally announced the sale of P&I and ADG to IOOF back in October 2017.
Under the agreement ANZ will initially receive a payment of $800 million from IOOF, equivalent to approximately 82% of the economic interest in ANZ’s P&I businesses. But investors will have to wait until the end of the first half of 2019 to see any real shifts in holdings.
ANZ’s future outlook
In other news ACCC confirmed it has laid criminal charges against ANZ and other banks. All have strenuously denied the allegations. With Citi Group stating there was no precedent for the action, noting there had been no guidance notes issues by ACCC to the bank underwriting activities.
ANZ’s global head of treasury Rick Moscati has been charged, but little can be said about the outcome of these developments.
For Markets & Money
PS: Not happy with the way ANZ shares are travelling? Want to find out if you’re holding other useless stocks? Discover why these five household-name stocks could be the first to lose you money when Aussie stocks drop dramatically. Free report available now. Click here.