Here's why the ANZ (ASX:ANZ) share price is up 4% in a week

What's behind the share price gain?

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Investors will be elated with how the Australia and New Zealand Banking Group Limited (ASX: ANZ) share price performed last week.

Shares in the banking giant closed Friday's session at $29.53, marking a 4% gain for the week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) only managed to crawl 1.2% higher for the week.

It's not very common to see the share price of a big bank like ANZ outperforming the broader index.

Let's take a look at what's been fueling the ANZ share price this past week.

What's been fueling the ANZ share price?

Several catalysts helped propel the ANZ share price higher last week.

First and foremost was a strong full year result from its rival Commonwealth Bank of Australia (ASX: CBA).

With CBA splashing $10 billion on dividends and buybacks, investor sentiment towards the banking sector as a whole lifted substantially.

A second catalyst that boosted the ANZ share price last week was the appointment of a new Chief Financial Officer (CFO).

The banking giant appointed Farhan Faruqui as its new CFO last week.

ANZ's management highlighted Mr Faruqui's accomplishments and experience, painting a positive outlook for the bank's future.

Outlook of the ANZ share price

Last week's strong performance capped off a stellar year thus far for the ANZ share price.

Shares in the banking giant have soared nearly 30% higher since the start of the year.  

With general improvement in credit conditions, this price action highlights the bullish sentiment for the overall banking sector.

Given the strong full-year result posted by CBA last week, investors will be keeping a keen eye on how other banks have performed.

With its strong capital position and cost reductions, ANZ is expected to follow suit and provide investors with a generous dividend yield.

In a recent note from broker Bell Potter, analysts initiated a buy rating on ANZ with a $30 share price target.

The broker also expects ANZ to continue to pay out a fully franked dividend per share of 140 cents in FY 2021.

Analysts also forecasted a payout of 146 cents in FY 2022 and 154 cents in FY 2023, reflecting an average 5% dividend yield.

As a result, the ANZ share price will receive extra attention this reporting season.

ANZ is expected to release its results for the financial year on Wednesday the 18th of August.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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