Australia and New Zealand Banking Group Ltd (ASX: ANZ) shareholders are a hardy bunch.
While some other big bank rivals have powered ahead after the Hayne Royal Commission and the arrival of the COVID-19 pandemic, ANZ shares have been on a road to nowhere.
In fact, over the past 5 years the stock price has dipped 10.5%.
Yikes.
Much has been written in business media about ANZ's struggles last year with home loan applications. Sluggish processes and systems have meant the bank has helplessly seen its share of the mortgage market in terminal decline.
Just in December, APRA numbers showed the bank losing 0.1% in the owner-occupier housing market. ANZ did gain 0.1% in investor loans but that was the same growth rate as the previous month.
A couple of months ago, the bank suffered perhaps its most brutal blow to its dignity.
ANZ technically dropped out of the long-standing club of the biggest 4 banks in Australia, when Macquarie Group Ltd (ASX: MQG) intruded briefly.
It was a savage reminder that nothing can be taken for granted anymore.
But is there a light at the end of the tunnel for ANZ shares?
Rising interest rates and faster mortgage processing
Red Leaf Securities chief executive John Athanasiou told The Motley Fool that 2022 was looking brighter for ANZ shares.
"Their margins have slightly decreased, but we see that improving," he told Ask A Fund Manager.
"All the big four, essentially, will benefit from rising rates. That'll improve margins and it'll moderate the negative impact low interest rates have had on their margins."
To add to this, the bank is forecast to give out a grossed-up dividend yield of more than 7%.
Athanasiou is not the only professional investor bullish on ANZ.
According to CMC Markets, 9 out of 15 analysts rate the stock as a "buy". Eight of those high conviction, rating ANZ as a "strong buy".
According to Athanasiou, ANZ will reap benefits from fixing up its much-maligned home loan approval processes.
And this upside gives the stock the crucial edge over its big four rivals.
"We know that ANZ has made a lot of progress in simplifying their home loans. They've lost their market share, but they've improved their back office, their technologies," he said.
"Which means that your home loan will be approved in a far more timely fashion compared to its peers."
ANZ shares are down 1.3% for the year, to trade at $27.64 on Tuesday afternoon.
