Own ANZ shares? Here's your FY 2023 results preview

Will ANZ deliver strong profit growth in FY 2023?

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Reporting season in the banking sector has continued on Thursday, with National Australia Bank Ltd (ASX: NAB) releasing its full-year results.

Next in line to release its results will be ANZ Group Holdings Ltd (ASX: ANZ) on Monday. So, if you own shares in this big four bank, here's what you need to know about its release.

ANZ results preview

According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings of $7,711 million for FY 2023. This represents an impressive 18.4% increase over the prior corresponding period. This estimate also includes the $146 million of large/notable items that ANZ announced after the market close yesterday.

It is worth highlighting that Goldman is bullish on ANZ and has its shares on its conviction list. As a result, it will come as no surprise to learn that the broker believes the bank will deliver a result ahead of the market's expectations.

The consensus estimate is for cash earnings of $7,537 million in FY 2023, which is 2.25% lower than what Goldman is forecasting.

One thing they do agree on, though, is that ANZ will pay a dividend of $1.62 per share for the 12 months. If this is accurate, it will mean an 81 cents per share fully franked dividend is declared on Monday.

Should you buy ANZ shares?

While buying ANZ shares just before it releases its results carries risks, Goldman Sachs believes investors should be picking them up now.

This morning, it retained its conviction buy rating and $27.38 price target. This implies a potential upside of 6% from current levels.

The broker is also forecasting $1.62 per share dividends each year through until FY 2025. This will mean annual yields of 6.3% for investors.

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 positions in and has recommended Goldman Sachs Group. 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.

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