ANZ to expand share buy-back by $1.5 Bn to $3 Bn: Dodging the recent trend, Australia and New Zealand Banking Group Ltd (ASX: ANZ) witnessed a stock price surge on June 22, 2018 as it announced that it will increase its current on-market share buy-back, commenced on 15 January 2018, by a further $1.5 Bn to a total of $3 Bn. The investors seemed to have regained the lost confidence after a lot of hazy outlook that emerged during the Royal Commission.
This move comes after a declaration on 8 May 2018 that the group had received around $1 Bn of reinsurance proceeds as a feature of the first tranche of the sale of its Australian Life Insurance Business and was considering capital management options.
According to the Chief Financial Officer Michelle Jablko, the progress of transformation means the company is able to return this surplus capital to shareholders while retaining appropriate flexibility to invest in the business and maintain unquestionably strong capital levels.
The group reported Level 2 Common Equity Tier 1 capital (CET1) ratio as at 31 March 2018 of 11.04%. This would increase by 56 basis point on a pro forma basis after adjusting for completion of the buy-back, receipt of the reinsurance proceeds and completion of announced asset sales.
ANZ Shares climbed up 2.873 per cent on June 22, 2018 and closed at $28.650.
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