ANZ profits down 18 percent
(3 November 2016 – Australia) ANZ Banking Group has recorded full year cash profits of A$5.9 billion, down 18 percent from 2015.
In a statement, the bank saidL "The initial focus will be on the Australian wealth business where ANZ is exploring a range of possible strategic and capital market options that will maintain strong outcomes for customers."
"This includes the possible sale of the life insurance, advice and superannuation and investments businesses in Australia. ANZ will pursue a disciplined approach to this process and will update the market as appropriate."
ANZ said return on equity was down 1.6 percent from a year ago to 12.2 percent.
The bank’s common equity tier 1 (CET1) capital ratio was unchanged from last year, remaining at 9.6 after ANZ generated 1.06 percentage points of capital in the half. Additionally, ANZ reduced its risk-weighted assets by $12 billion in the institutional business.
Chief executive Shayne Elliott said: "In institutional banking, there has also been significant progress in improving returns and building a simpler business focussed on regional trade and capital flows.
"This included a meaningful reduction in low yielding assets and improved productivity," he said in a statement.
"We are also making changes to ensure we are fairer and more balanced in the way we deal with customers and to demonstrate our commitment to community responsibility.
"The current discussion about the banking sector in Australia however, shows that we still have more to do to shift our culture and evolve the way we do business."
The bank total provision charge for bad debts was A$1.96 billion while gross impaired assets increased by three percent to A$3.17 billion.
In the ASX release. Elliott added that the bank had a "clear strategy and a consistent focus" on simplifying the business and rebalancing the portfolio.
"Importantly we have the organisation aligned and we have established momentum in relation to the work that still needs to be done.
"This sets us up well to increase the pace of execution in 2017 and to deliver a better bank for customers and for shareholders,” he said.
Earlier this week it was revealed that it would sell its retail and wealth businesses in five Asian countries to Singaporean bank DBS. However, according to its ASX statement, distributing wealth products and services should remain a core component of the ANZ's overall customer proposition - but the bank didn't need to manufacture them.
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