Australia and New Zealand Banking Group Ltd.

We consider that ANZ's creditworthiness benefits from a highly likelihood that the Australian government will provide timely financial support to the bank, if needed. The outlook on ANZ is stable. We see limited downside to economic risks facing Australian banks in the next two years, including when stronger credit and house price growth resumes on the back of resurgent immigration and limited housing supply. We forecast ANZ's credit losses will remain low and close to pre-pandemic levels at about 15 basis points of customer loans. Consequently, we expect ANZ's earnings to remain sound, supported by rising interest rates. The bank is likely to maintain a strong risk-adjusted capital (RAC) ratio between 10.8% and 11.3%. We see an upside to our

...Australia and New Zealand Banking Group Ltd. (ANZ) should be able to maintain its earnings profile. Support will come from the bank's strong market position and focus on low-risk retail and commercial banking in Australia and New Zealand. Despite rapid increases in consumer prices and interest rates, the economies of both countries have a solid outlook. Unemployment should remain low. ANZ Group Holdings Ltd. is the non-operating holding company (NOHC) of the consolidated ANZ Group. The banking subgroup drives ANZ Group's stand-alone credit profile (SACP). This is because it forms the predominant part of the ANZ Group. ANZ's capitalization will remain a strength to its credit profile. Credit losses should remain low and close to pre-pandemic levels in the next two years....

Full Report