The Australia and New Zealand Banking Group (ASX: ANZ) share price was back in form on Tuesday.
The banking giant's shares finished the day with a stunning 12% gain to $18.40. This helped drive the S&P/ASX 200 Index (ASX: XJO) index 5.8% higher.
Shareholders will no doubt be hoping for more of the same on Wednesday. Especially after the bank provided an update on the expected impacts of the coronavirus on its business.
What did ANZ announce?
This afternoon CEO Shayne Elliott revealed that the bank has a framework in place to manage the COVID-19 crisis.
The framework, which has four critical parts to it, is focused on protecting, adapting, engaging, and preparing for the future.
ANZ intends to protect its employees, customers, and business, while ensuring that it continues to provide essential services to the community.
It also acknowledges that it needs to adapt to the new world. Mr Elliott explained: "Our customers are behaving differently with us. So we need to adapt into that new world. And we know that […] new world will be with us for some period of time, not just a matter of weeks."
In respect to engagement, ANZ knows that it needs to engage with stakeholders and keep them informed about what it is doing. The bank acknowledges that this will be difficult, given how rapidly things are changing.
Management is also preparing for the future. When things return to normal, the bank intends to make sure it is "there to support those customers that have good businesses and those mums and dads who get them back on their feet and ready to contribute to the community."
Will ANZ be okay?
Mr Elliott believes the coronavirus crisis is very different to the global financial crisis or the Asian financial crisis.
He notes that when you go into a normal financial crisis, it is difficult to see the "light at the end of the tunnel because you just don't know how long that recession or that downturn is going to last."
However, with this crisis, Mr Elliott believes there is a reasonably good idea of how long it will last and is optimistic that with effective policy and swift action, this could be a three, four, or five-month impact.
Which is a big positive for ANZ and ultimately the Australian economy. He explained: "The good news from that is, as a bank, if that's the case, we're much better equipped to help customers see through a 3-6-month period of difficulty than an unknown period of difficulty. So that's why I'm reasonably confident that the banks are able and willing to help."
