Safety first not the strategy for this year
(7 November 2011 – Australia) Emerging from a "safety first strategy" from the first half of the year, ANZ chief Mike Smith revealed the bank will be jump-starting earnings growth this financial year.
ANZ unveiled a full-year net profit of A$5.36 billion, a 19 percent rise, even with the move to a ‘risk off’ situation.
'The daily volatility (in the last quarter) was more extreme than 2007 and 2008,' Mr Smith said, as the bank posted figures revealing revenue from its global markets division fell by 28 percent.
'Trying to judge what was going on and read the market became so difficult and it was so unpredictable it was better to move to a 'risk off' situation.
'It didn't allow the traders to make money but didn't allow us to lose it either,' he said of the institution's large investment arm.
But he said the bank was on the lookout for opportunities to buy Asian assets from European banks who were struggling to raise cash.
'(They will have to) reduce their balance sheet or sell out,' he said.
'We are already seeing opportunities with portfolios for sale.'
'The daily volatility (in the last quarter) was more extreme than 2007 and 2008,' Mr Smith said, as the bank posted figures revealing revenue from its global markets division fell by 28 percent.
'Trying to judge what was going on and read the market became so difficult and it was so unpredictable it was better to move to a 'risk off' situation.
'It didn't allow the traders to make money but didn't allow us to lose it either,' he said of the institution's large investment arm.
But he said the bank was on the lookout for opportunities to buy Asian assets from European banks who were struggling to raise cash.
'(They will have to) reduce their balance sheet or sell out,' he said.
'We are already seeing opportunities with portfolios for sale.'
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