Smith: solid December quarter but boring is still good

ANZ chief executive Mike Smith told BlueNotes the December quarter earnings were much as he had expected but he still believed “boring” bank results were good in uncertain times.

Smith: solid December quarter but boring is still good

“I think confidence is still an issue, globally,” he said despite clear signs the world’s biggest economy, the US, was recovering. Offsetting the US outlook Europe “is still pretty desperate” while Australia’s part of the world was much better off.

"That’s the new reality, the world, especially OECD countries, have entered a lower growth phase."
Mike Smith, Chief Executive Officer ANZ

While trading conditions in Asia were tough, with lower commodity prices impacting ANZ earnings, business and trade flows remained very strong. The issue though for Australia was the ongoing political uncertainty, Smith said.

Given those factors overall, he said “I think massive volatility in earnings is unlikely in future”.

The CEO also commented on the retirement of ANZ’s Australia head and global retail boss Phil Chronican and the promotion of Mark Whelan to the Australian role.

“We have to be continually planning these sorts of changes, Phil has done a great job,” he said. “Mark had gone on to the management board, (he) is part of the bench strength.”

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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