Why did ANZ shares smash the other ASX 200 banks in April

ANZ shareholders will have been smiling in April.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ANZ Group Holdings Ltd (ASX: ANZ) shares were in fine form in April.

During the month, the banking giant's shares rose a sizeable 6.2%.

As well as being far stronger than the ASX 200 index at its 1.8% gain, it also smashed what the other big four banks recorded.

a man in a business suit sits happily leaning back into his hands behind his head with his feet on his desk and smiles broadly.

Image source: Getty Images

Why did ANZ shares outperform other ASX 200 banks in April?

It remains unclear exactly why investors had a preference for ANZ shares last month.

In fact, the bank was actually dealt a blow in April when the ACCC revealed that it had concerns over the proposed acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN).

The ACCC's preliminary view is that the areas of competition between ANZ and Suncorp Bank that have the most potential to raise competition concerns stem from the activities in which they overlap, including: the supply of agribusiness banking, small and medium-sized enterprise (SME) banking, home loans and retail deposits (including transactions and savings accounts and term deposits). The ACCC also considers there is a higher degree of geographic overlap between ANZ and Suncorp Bank in Queensland and northern New South Wales.

However, it is worth noting that a couple of brokers spoke very positively about the bank in April. This could have given the buy-side of the equation a boost, lifting its shares in the process.

What were the brokers saying?

One of those brokers was Macquarie, which retained its outperform rating and $26.00 price target on the bank's shares.

It believes ANZ is well-placed to benefit from improving margins and market income. It expects mortgage margin pressures to be offset by slower deposit re-pricing and a more favourable lending mix.

Over at Citi, its analysts continue to rate ANZ shares as a buy with a $27.25 price target. This suggests almost 12% upside despite last month's gains. It commented:

ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Bank Shares

A woman with her hands over her face splits her fingers over one eye so she can peep through it.
Bank Shares

Westpac shares tumble to 52-week low on Thursday: Can they rebound?

Find out what brokers forecast for the ASX bank stock over the next 12 months.

Read more »

Man holding different Australian dollar notes.
Bank Shares

By August 2027, CBA shares could turn $15,000 into…

Here’s what could happen with CBA shares…

Read more »

A woman in a red dress holding up a red graph.
Bank Shares

How high will Judo Capital shares go? Brokers have their say

It's looking like time for these shares to rebound.

Read more »

ASX 200 bank share trading depicted by red buy and sell dice tumbling across a sheet of data in colourful graphics
Broker Notes

With $30 billion in FY26 income, should I buy CBA shares today?

A leading analyst digs into the outlook for CBA’s slipping shares.

Read more »

Calculator next to money.
Bank Shares

Is the NAB share price a buy for its 6% dividend yield?

Is this ASX bank share a buy for dividend income?

Read more »

Arrows with the words up and down.
Bank Shares

2 ASX 200 bank stocks making BIG moves today on results

Investors are piling into one ASX 200 bank share on Tuesday while abandoning a second. But why?

Read more »

Man working on his tablet with hologram of a world map and financial-related charts.
Bank Shares

Bendigo and Adelaide Bank posts FY26 profit as it commits to risk overhaul

Here's what the regional bank expects to report for the year.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank.
Bank Shares

Here's the dividend forecast out to 2028 for CBA shares

Here’s what CBA is expected to do with its dividend over the next two years…

Read more »