Announcing the half year results ANZ CEO Mike Smith said: “This is a good, well balanced financial performance with solid progress made in reshaping our business in response to the more challenging macro-environment.”
Profit for Global Wealth increased 11% driven by strong underlying performance from the Insurance business which benefited from growth in in-force premiums, stable claims and improved lapse experience. Private Wealth and Funds Management experienced strong investment market performance and improved volumes with Funds Under Management up 11% at the end of the half.
With wealth management offices spread across Asia ANZ has been working hard to penetrate the competitive Asian hinterland. It has not been plain sailing however, in Singapore it recently lost several senior staff including Manfred Liechti the managing director of global private banking.
Global Wealth continues to focus on improving the customer experience and increasing penetration of the existing bank customer base, with wealth solutions increasingly integrated with the banking offer and more options for the self-directed customers. The business now serves over 2.4 million customers across the region, managing more than $68 billion in investment and retirement savings.
CEO Smith went on to say, “For the foreseeable future, we will be operating in a lower growth environment in which there will continue to be occasional volatility and shocks. This environment presents some challenges, however we are confident about the benefits of our Super Regional strategy over the longer term.
Yesterday ANZ announced its intention to sell the Esanda Dealer Finance business. The sale will include approximately $8.3bn in lending assets comprising point-of-sale finance, bailment facilities and other Esanda branded finance offered to motor vehicle dealers.
