Bulletin: ANZ's Dividend Deferral Supportive Of Credit Quality

SYDNEY (S&P Global Ratings) April 30, 2020--Australia and New Zealand Banking Group Ltd.'s (ANZ; AA-/Negative/A-1+) decision today to defer its interim dividend, at a time when earnings are under pressure from COVID-19 related loan loss provisions, is supportive of our current assessment of the ratings on ANZ. Banks can deploy various capital management strategies and initiatives, of which dividend deferral is one option. We understand that in the coming months, the ANZ board plans to monitor the evolving situation, including the severity of community lockdowns, before determining a final position on its interim dividend, likely in August 2020. ANZ also announced a significant rise in impairment charges to about A$1.7 billion, which includes forward-looking collective provisions of around A$1.0 billion,

...April 30, 2020 SYDNEY (S&P Global Ratings) April 30, 2020--Australia and New Zealand Banking Group Ltd.'s (ANZ; ##-/Negative/A-1+) decision today to defer its interim dividend, at a time when earnings are under pressure from COVID-19 related loan loss provisions, is supportive of our current assessment of the ratings on ANZ. Banks can deploy various capital management strategies and initiatives, of which dividend deferral is one option. We understand that in the coming months, the ANZ board plans to monitor the evolving situation, including the severity of community lockdowns, before determining a final position on its interim dividend, likely in August 2020. ANZ also announced a significant rise in impairment charges to about A$1.7 billion, which includes forward-looking collective provisions of around A$1.0 billion, reflecting the economic outlook. Total credit impairment charges increased to 53 basis points (bps) of gross loans and advances as of March 31, 2020, up 40 bps on the prior...

Bulletin