ANZ Bank, one of New Zealand's largest banks, is facing challenges in the banking world as competition for deposits and borrowers impacts its net interest margin (NIM) [a88d3ce2]. Some analysts predict that ANZ may cut its dividend in FY24 [a88d3ce2].
In contrast, fund manager GQG Partners Inc has seen rapid growth in its funds under management (FUM) and has committed to a dividend payout ratio of 90% of its distributable earnings [a88d3ce2]. GQG is expected to grow its annual dividend per share to 19.5 cents in 2024 [a88d3ce2].
ANZ's profit may not return to FY23 levels until FY26, while GQG could be paying a dividend yield of 9.7% by FY26 [a88d3ce2]. GQG has a strong investment team and is experiencing strong FUM inflows [a88d3ce2].
Despite the challenges, ANZ remains confident in its ability to support customers and the New Zealand economy. The bank saw growth in market share and home lending, and expenses increased by only 1%. Revenue increased by 10% due to higher lending volumes and growth in net interest margin [7012cac5]. ANZ is preparing for more stress among mortgage-holders as the housing market slows down and inflationary pressures and interest rates rise. The bank encourages customers facing financial pressure to reach out for targeted support. ANZ emphasizes its strong position to provide stability for the economy and urges New Zealanders to have confidence in their banks [7012cac5].
ANZ Bank's challenges in the banking sector and the potential dividend cut highlight the competitive landscape and the need for banks to adapt to changing market conditions. Meanwhile, GQG Partners Inc's strong growth in funds under management and commitment to dividend payouts demonstrate its resilience and potential for strong returns for investors [a88d3ce2].