ANZ shares just slid to their lowest level in a week

SHAMSHAHRIN SHAMSUDIN / AFP / Getty Images

ANZ Bank shares fell to the lowest level in a week as investors focused on falling margins and revenue.

Shares in Australia’s third-largest lender by market value, which had run up for four consecutive sessions prior to Tuesday, fell as much 3% to their lowest level since April 24.

The shares were down 2.4% at $32.16 a little while ago dragging its main rivals lower as well. CBA, NAB and Westpac were all down at least 1%.

“Expect there will be some disappointment in the market with this result given the extent of the recent share price rally (peers face a similar fate),” Citigroup analyst Craig Williams said in an investor note.

“Whilst ANZ’s restructure remains on track in our view, the ride will be bumpier than many investors expect.”

Net interest margins, a key measure of lending profitability, slid 6 basis points from a six months earlier to 2% underscoring the challenges Australian banks face from higher funding cost and deposit competition. The drop in the measure came despite the bank increasing its mortgage rate.

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