ANZ Group Holdings Ltd (ASX: ANZ) will hold a strategy day on 13 October to update investors about the bank's plans under recently appointed CEO Nuno Matos.
The strategy day is expected to elaborate on ANZ's plan to cut 3,500 jobs, which represents 8% of employees.
The move is part of a broader restructuring plan to simplify its operations, strengthen its focus on priorities, and save on costs.
ANZ said the restructure simplifies operations by reducing duplication and internal complexity.
The bank is also expected to discuss its plans to integrate the ANZ Plus platform with Suncorp's banking business. ANZ acquired Suncorp Bank in July 2024.
Ahead of the strategy day next week, Macquarie Group Ltd (ASX: MQG) has updated investors with its 12-month price target and outlook on ANZ shares.
Macquarie's stance on ANZ shares
ANZ shares are 1.83% higher at the time of writing and changing hands at $33.89 a piece. For the year, the shares are 12.55% higher.
And in a recent note to investors, Macquarie confirmed its neutral rating and $32.50 target price on ANZ shares. At the time of writing, that represents a potential 4.1% downside for investors over the next 12 months.
"We leave our TP unchanged at $32.50/share, as earnings upgrades were offset by a reduction in the market multiple. This is based on a blended Gordon Growth and relative valuation approach," Macquarie analysts said.
"With ANZ trading at ~15x P/E and 1.3x P/NTA, we believe execution risks are balanced with the potential upside of improving franchise performance and returns. While ANZ is no longer cheap, it is worth noting that peers have re-rated and now trade at 19-27x P/E and 1.8-3.5x P/B. Maintain Neutral."
What Macquarie expects from ANZ's strategy day
Macquarie analysts expect ANZ to announce an acceleration of Suncorp integration, with completion in late CY26 or early CY27, and an update on synergies from Suncorp bank integration, with delivery earlier than expected and potentially larger.
"Based on historical experience for inmarket M&A (~40-50% of target cost base), total synergies could be increased to ~ $400-500m in time," the broker said.
Macquarie also expects a change in ANZ Plus strategy, an update on the retail bank strategy, and medium-term 'aspirational' targets. Aspirational targets include cost-to-income and return-on-equity targets for the group.
"ANZ will likely target better returns across the group, but history suggests this is easier said than done. We expect consensus and the market to rightfully remain sceptical on ANZ's ability to deliver medium-term targets; however, we see risk of new targets anchoring analyst expectations, which could drive additional medium-term earnings upgrades.
"We expect the acceleration of SUN integration to be received positively by the market, and drive some medium term (FY28) consensus upgrades. Ahead of this, we change our FY26-28E earnings by -1% / +2% / +3%, largely reflecting the acceleration of the integration and synergies."
