Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are pushing higher again on Wednesday.
In afternoon trade, the banking giant's shares are up 0.5% to $25.78. This means the ANZ share price is now up 13% since the start of the month.
Based on this strong gain, it is apparent that expectations are high for the bank's full year results release on Thursday next week.
Ahead of the release, let's take a look to see what analysts are expecting ANZ to report.
What is expected from ANZ's FY 2022 results?
According to a note out of Goldman Sachs, its analysts are expecting ANZ to have had a strong second half of FY 2022.
The broker expects the bank to report second half cash earnings before one-offs of $3,422 million, which will be an increase of 6.7% on the prior corresponding period. This would take ANZ's full year cash earnings to $6,535 million, up 5.4% on FY 2021's numbers.
The good news for shareholders is that Goldman believes the bank's dividend will also increase in FY 2022. Though, not in line with its earnings growth.
It has forecast a fully franked final dividend of 73 cents per share, bringing its full year dividend to 144.4 cents per share. This will be a 2.5% increase over FY 2021's dividend of 140.9 cents per share.
What else?
The main reason that ANZ's shares have been rallying higher this month is optimism over its margin outlook. In light of this, the market will be looking closely at what ANZ has to say on its net interest margin (NIM).
Goldman is expecting ANZ's second half NIM to be up 9 basis points half on half to 1.67%. It commented:
We will be keen to see to what extent tailwinds from the rising cash rates have flown through into 2H22 and to get an updated outlook given the more progressed economic environment since 1H22. We currently forecast the 2H22E NIM to increase 9 bp hoh to 1.67%.
Are ANZ shares good value?
At present, Goldman Sachs is sitting on the fence with ANZ's shares.
It currently has a neutral rating and $26.09 price target on them. This is just a touch higher than where they are trading today.
