ANZ Shares Fall Most in Six Months After ‘Underwhelming’ Result
- Dividends unlikely to return to 100% franking and may be cut
- Expenses seen growing in FY20 making cost target hard to meet
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Australia & New Zealand Banking Group Ltd. shares fell by the most in six months Thursday after the lender changed the way it paid dividends that will see investors pay a higher amount of tax on the funds.
The bank lowered the amount of the payout that is eligible for franking credits -- which allow Australian shareholders to reduce the tax they pay on income from dividends, marking the first time since 1999 that it hadn’t covered 100% of the tax burden.