The ANZ Banking Group (ASX:ANZ
) share price traded as much as 10% lower on Monday following news of a banking relief package last week, further economic stimulus from the Government and more COVID-19 containment efforts over the weekend.
For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 4524.7, down 6.06%.
ANZ is a leading Australian and New Zealand banking institution, with a presence throughout the oceanic region. ANZ is one of the Big Four Aussie banks and derives much of its revenue from mortgages, personal loans and credit.
ANZ bank stimulus package
Australia’s major banks are being hit hard today following news of further stimulus measures and an economic freeze announced over the weekend.
Last week, ANZ announced its range of COVID-19 relief measures which will see the bank inject $6 billion back into the economy in an attempt to do its part in helping our economy bounce back as quickly as possible.
The package from ANZ includes a reduction in interest rates for small businesses and home loans, plus the ability to request a deferral on homeloan repayments up to six months, with a review at 3 months.
“Our package supports Australian business and the people who work for them.” ANZ CEO Shayne Elliot said. “We understand the impact this crisis is having and ANZ will play a major role in backing Australia’s economy and our customers through these challenging times.”
“Our decision to reduce variable home loan and small business rates is the right thing to do for our existing customers, particularly the significant number of our home loan customers who are self-employed and managing the effects of the COVID-19 crisis on their own businesses.”
At the weekend, various governments announced they would implement a reduction in all non-essential business services and all domestic travel, to curb the spread of COVID-19.
According to many authorities, around 5 weeks of strict isolation (i.e. staying at home) then ongoing testing and tracing is the only meaningful way to contain and, one day, stop the COVID-19 virus.
What Happens Next?
Earlier today, our lead investment analyst wrote a story about the current state of play for bank shareholders. If you own ANZ or any of the bank stocks, it could be worth reading.
ANZ Banking Group shares were last seen trading at $14.30, giving the company a market capitalisation of $40 billion.
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The author of this article does not have a financial interest in any of the companies mentioned.
