ANZ Bank shares rocket on management shake-up

The share price of Australia and New Zealand Banking Group (ASX: ANZ) is up more than 5% today after the bank’s new CEO revealed a management restructure designed at improving productivity and digital firepower.

ANZ Bank shares are also climbing in tandem with the likes of Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) after the quarterly Australian gross domestic product number came in at a better-than-expected 3%. This looks a strong result given the nation is still going through the unwinding of a mining boom and suggests any chance of a further rate cut from the Reserve Bank of Australia in 2016 is limited.

The banks’ shares have also been supported by more price growth across national residential property markets in the first two months of 2016 as investors gain confidence that the outlook for the residential property market might not be as dark as some Hollywood movie fans have concluded.

However, ANZ Bank shares have still lost around 30% of their value over the past year as investors worry about its exposure to Asia and commodity markets, while its recent capital raising and worries over the sustainability of dividends have also spooked investors.

For now ANZ looks to be a bank in transition, and I would prefer the solid track record of the Commonwealth Bank of Australia if I were an income-seeking buyer of big bank shares.

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Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

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