ANZ holds its rating despite profit fall

The ratings agency described the bank’s recent half-year results as “a substantial decrease compared with the prior corresponding period.”

It said the items which contributed to the profit fall where either one-off in nature or positioning ANZ for the future.

“(They) are largely of a one-off nature and currently within our tolerances at the current rating level,” S&P said.

Overall the Australian and New Zealand retail bank performed well, aided by commercial lending and wealth management. 

“We note that ANZ has made clear references to its intent to exit low return and non-core businesses and further strengthen its balance sheet by rebalancing its portfolio. We believe that these references could be a precursor to a change in the group's strategy in relation to one or more of its subsidiaries--other than its core banking business in New Zealand."