Utilising our CoE-derived valuation methodology, we set our TP at $32.50. This reflects our key assumptions of a terminal ROE of 11.0%, a cost of equity of 9.0%, and a terminal growth rate of 4.5%.

We believe banks' share prices and earnings performance are subject to common factors and risks: net interest margin pressure, interest rate risk, market risk, operational risk, funding risk and re-regulation. Adverse or favourable movements in these risk factors may cause ANZ's share price to deviate from our target price.