September hasn’t been a great month so far for the ANZ (ASX:ANZ) share price

We take a closer look at how the bank has been faring so far this month…

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has had a tough time of it this month.

Shares in the banking giant have slipped more than 2% since the start of September.  

Let’s take a look at why investors have been bidding the ANZ share price lower this month.

Why is the ANZ share price struggling?

Shares in ANZ have struggled to catch a bid this month.

However, the banking giant hasn’t released any price-sensitive news since the start of September.

As a result, there are many undercurrents that could be putting pressure on the ANZ share price.

Firstly, general weakness in the broader market domestically and abroad could explain why shares in the banking giant have struggled.

Since the start of the month, the broader S&P/ASX 200 Index (ASX: XJO) has also slid around 2%.

A bearish note from leading broker Citi has also clouded sentiment towards the ANZ share price.

According to analysts, recent APRA data indicates a sharp contraction in ANZ’s mortgage book.

In addition, some experts have also flagged a more bearish outlook for the banking sector overall.

According to the commentary, moderation in volume and housing growth could slow near-term growth prospects for the big banks.

Outlook for the ANZ share price

Despite shares in ANZ struggling this past month, all is not doom and gloom.

Contrary to the bearish sentiment, some analysts are more optimistic about the outlook for the ANZ share price.

Most recently, a note from renowned broker Morgans highlighted ANZ as its favourite big four bank.

Analysts cited ANZ’s focus on absolute cost reduction has painted a compelling valuation on the bank.

Morgans forecasts ANZ to pay fully-franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. 

Snapshot of the ANZ share price

Despite struggling this past month, shares in ANZ remain more than 19.5% higher for the year. 

In its recent business update for the third quarter, the banking giant noted that its CET1 ratio came in at 12.2%, a slight reduction from the 12.4% recorded in the previous period. 

With its strong capital position and cost reductions, ANZ announced its intention to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The ANZ share price closed Friday’s trading session at $27.41.

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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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