Australia and New Zealand Banking Group passes milestone: Is it time to buy?

Australia and New Zealand Banking Group (ASX:ANZ) is the latest company to have a market capitalisation above $100 billion.

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For the first time ever, in afternoon trade today, Australia and New Zealand Banking Group (ASX: ANZ) became a $100 billion company.

With more than 2,756 million shares on issue and a record high share price of $36.66 achieved this afternoon, ANZ's total market capitalisation grew to over $101 billion.

Surging almost 200% in share price since the depths of the Global Financial Crisis in 2008/2009, ANZ is one of only five companies listed on the ASX to have a market capitalisation above $100 billion.

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) sit comfortably above the threshold, with market caps of approximately $155 billion and $123 billion, respectively.

Dual-listed mining giants BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also have total market capitalisations over $100 billion. However, excluding their foreign-listed shares, neither would make the cut, with current price tags of $97 billion and $25 billion, respectively.

Is it time to buy ANZ shares?

ANZ's share price is currently being buoyed by the record low interest rates on offer from the Reserve Bank of Australia, and elsewhere. This has pushed its provisions for bad debts downward (thus boosting profits) and provided the impetus for investors to take on more credit.

However, like many financial institutions, ANZ's earnings are cyclical. Given that we may be at the peak of the investment cycle, long-term investors are advised to wait for a much lower share price before hitting the buy button.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the companies mentioned. Owen welcomes your feedback on Google plus (see below) or you can follow him on Twitter @ASXinvest. The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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