The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is down 0.2% today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $23.71. Shares are currently changing hands for $23.66.
With the end of the 2023 financial year (FY 2023) just hours away, the ANZ share price looks set to finish the financial year up more than 8%.
Adding in the two fully franked dividends, totalling $1.55 per share, and the ASX 200 bank stock's accumulated value is up more than 15%.
Of course, that's all water on the bridge.
What ASX 200 investors want to know now is, what's in store for the ANZ share price in FY 2024.
What are the experts forecasting?
A number of leading brokers are bullish on ANZ for the year ahead.
Citi, for example, says the big bank's "unique capabilities" put it in a position where it's "set to deliver relative outperformance in the current market conditions".
Atop that relative outperformance, Citi is also forecasting an FY 2024 dividend boost for a full-year payout of $1.66 per share. At the current ANZ share price that equates to a forecast yield of 7%, with potential tax benefits from those franking credits.
The broker has a buy rating on ANZ with a $26.50 price target. That represents a potential 12% upside for FY 2024.
Goldman Sachs is also bullish on the big bank's outlook, partly based on expectations that ANZ's institutional business will help drive outperformance in the year ahead.
The broker recently upgraded ANZ shares to a buy. Goldman has a $27.38 target for the ANZ share price, some 16% above the current price. Goldman is also optimistic on the dividend outlook, forecasting a 7% yield for FY 2024.
What else could impact the ANZ share price in FY 2024?
There are a few other events to keep an eye on over the coming year.
First, the Australian Competition and Consumer Commission (ACCC) is expected to announce its decision on ANZ's proposed acquisition of Suncorp Group Ltd's (ASX: SUN) banking business in July. If the ACCC greenlights the deal, it could offer some tailwinds for the ANZ share price.
As for potential headwinds in FY 2024, keep an eye on the inflation battle and the likely path of interest rate increases from the Reserve Bank of Australia (RBA).
Further rapid rate increases from the all-time lows in May 2022 could see a big uptick in bad debts in the year ahead, with many mortgage holders having taken out loans at much lower rates.
