ANZ has sold its shareholdings in companies that have links to Saudi Arabia while the kingdom plays a role in the Yemen war.
The bank is in the process of adding them to its exclusion list.
It comes after the bank faced criticism for its KiwiSaver investment in Raytheon Technologies, Textron and BAE Systems, after it was revealed numerous politicians were in the KiwiSaver fund with links to the military companies.
ANZ told 1 NEWS its "tiny shareholdings in these companies have been sold and we are in the process of adding them to our exclusion list".
BAE Systems has sold billions of dollars of weapons to the Saudi military, Textron has provided cluster munitions and aircraft to the Saudi military and Raytheon also provides munitions.
Prime Minister Jacinda Ardern had her KiwiSaver money tied up with ANZ, telling 1 NEWS when ANZ first announced it would review the investments she thought it was a "good thing to do".
Green MP Chlöe Swarbrick immediately pulled her KiwiSaver from ANZ when she found out about the investment.
Swarbrick said last month it was "devastating, in the same way I think it will be for the tens of thousands of Kiwis who have invested in a similar way and it simply shouldn't take investigative journalism to reveal these kinds of things".
"There should be far more transparency but worse than this, what is so deeply unethical, should be illegal - it should never have been happening in the first place," Swarbrick said.
The New Zealand Superannuation Fund also admitted it was investing in the same companies. Kiwi Wealth, the KiwiSaver distributed by Kiwibank, also invests in Raytheon Technologies. Kiwi Wealth's investment saw both Green Party leaders divest their KiwiSaver from the scheme.