Search
Close this search box.

ANZ chairman lays out 5 year plan

Australia
Uncategorized
Business Development & Expansion, Expansion

(7 December 2015 – Australia) Australia & New Zealand Banking Group's (ANZ) chairman has endorsed the company’s Asia-focused strategy set eight years ago by outgoing chief executive Mike Smith.

David Gonski said: “There is a requirement to take advantage of the great benefit of our settings” in Asia.

“Take from what we've been given from the previous management and make a business that has good returns and at the same time continue the good work to build a pan-Asia or transnational enterprise,” he said.

In Australia, Gonski said he saw the bank improving its business, including investing more to expand in New South Wales, the nation's largest state economy.

Gonski outlined the priorities that Elliott, who is currently chief financial officer, will inherit when he takes Smith's job on January 1.

The Asian operations have dragged on profitability as growth in the region slows. ANZ has already taken steps to boost its return on equity in Asia.

In October, the bank slashed around A$9 billion of trade finance exposure in the region, with plans to reduce its institutional loan book in the region.

It aims to expand its less capital-intensive cash transaction business, which includes enabling cross-border payments, collections, and investment services for clients.

There were areas “where basically we are not receiving our cost of capital”, Gonski said.

Gonski said Elliott “has to examine whether it is worth using capital for that or whether what we are doing there can really strive without it.”

According to Gonski, the bank's board regarded New South Wales as a “very good market” for further investment.

“We believe we can grow there both financially well and increase our weighting in the region,” he said.

Connect
with East

At East & Partners we work together as one firm to serve our clients wherever they need us.

Our collective knowledge and experience across globalĀ  markets helps us guide clients on the intricacies of each region while enabling cohesion across their global footprint. Apples with apples and pears with pears in complex and demanding financial services markets
globally.

Lookup
subscribe
This field is for validation purposes and should be left unchanged.