Bulletin: ANZ's Strengthened Provisioning Helps Absorb COVID Impact

SYDNEY (S&P Global Ratings) Oct. 29, 2020--Australia and New Zealand Banking Group Ltd.'s (ANZ; AA-/Negative/A-1+) announced increase in its credit provision charge positions it well to absorb the credit losses that COVID-19 are likely to inflict on the bank. In its full year results announcement today, ANZ increased its credit provision charge by about A$1.1 billion for the second half of 2020. This brings the bank's total provisioning charge to about 43 basis points of gross loans and advances for the year. The rise in credit loss provisions, and consequent drop in earnings, is broadly in line with our expectations. We maintain our view that the bank's capital position is likely to remain strong. We believe that ANZ's underlying profitability,

...October 28, 2020 SYDNEY (S&P Global Ratings) Oct. 29, 2020--Australia and New Zealand Banking Group Ltd.'s (ANZ; ##-/Negative/A-1+) announced increase in its credit provision charge positions it well to absorb the credit losses that COVID-19 are likely to inflict on the bank. In its full year results announcement today, ANZ increased its credit provision charge by about A$1.1 billion for the second half of 2020. This brings the bank's total provisioning charge to about 43 basis points of gross loans and advances for the year. The rise in credit loss provisions, and consequent drop in earnings, is broadly in line with our expectations. We maintain our view that the bank's capital position is likely to remain strong. We believe that ANZ's underlying profitability, after the credit provisioning charges, asset impairments, and a dividend payment of about 49% of second-half statutory net profit supports our view that the absolute amount of capital will not diminish. In our view, the above-system...

Bulletin