Bulletin: ANZ's Investments In Operations Should Support Future Growth

SYDNEY (S&P Global Ratings) May 4, 2022--Ongoing investments in operations and IT should help turn around Australia and New Zealand Banking Group Ltd.'s (ANZ) below-average growth in home lending, S&P Global Ratings said today. The bank's new retail banking platform will position it for longer term growth, in our view. ANZ (AA-/Stable/A-1+) announced solid results for the six months ended March 31, 2022, despite a 3% drop in its cash earnings. ANZ's earnings should remain strong relative to international peers. The bank's net interest margin is likely to improve on the back of rising interest rates, in our view. ANZ, along with the three other Australian major banks, has already increased its variable home lending rates by 25 basis points;

...May 3, 2022 SYDNEY (S&P Global Ratings) May 4, 2022--Ongoing investments in operations and IT should help turn around Australia and New Zealand Banking Group Ltd.'s (ANZ) below-average growth in home lending, S&P Global Ratings said today. The bank's new retail banking platform will position it for longer term growth, in our view. ANZ (##-/Stable/A-1+) announced solid results for the six months ended March 31, 2022, despite a 3% drop in its cash earnings. ANZ's earnings should remain strong relative to international peers. The bank's net interest margin is likely to improve on the back of rising interest rates, in our view. ANZ, along with the three other Australian major banks, has already increased its variable home lending rates by 25 basis points; this followed a similar increase in the official cash rate announced yesterday by the Reserve Bank of Australia. Conversely, Australian banks' credit losses are also likely to increase as interest rates rise; in particular, the more highly...

Bulletin