Here's how ANZ Bank just returned $3 billion to shareholders

Australia & New Zealand Banking Group (ASX:ANZ) has completed a $3 billion share buyback.

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The Australia & New Zealand Banking Group (ASX: ANZ) share price is 0.3% higher at $26.53 today as the wider S&P/ ASX200 (ASX: XJO) lifts 0.7% on the back of a strong overnight session for U.S. markets including the tech-heavy Nasdaq index.

Unfortunately, ANZ Bank shares are still down around 6% (excluding the beneficial impact of $1.60 per share in dividends paid) over the last 12 months in some disappointing returns for investors.

This is especially so when you consider that the bank announced today that it has bought back around $3 billion worth of shares (108.7 million) over the last 12 months which represents 3.7% of the capital on issue when the buyback commenced.

In theory a large buyback should support a stock price, but it appears the headwinds from the Royal Commission, rising costs, and falling house prices have still lead to more selling than buying.

Today the bank also flagged that it expects to complete the sale of its life insurance business to Zurich by May 2019. This event could see further capital returns on the proviso, among other things, that the group's capital adequacy meets regulatory requirements.

Elsewhere among the big banks, Commonwealth Bank of Australia (ASX: CBA) is up 0.5% to $71.47 today, while Westpac Banking Corp (ASX: WBC) is up 0.7% to $26.52.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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