ANZ confident on operations, conditions challenging

ANZ is confident it can grow its underlying businesses but remains wary of challenging economic conditions in Asia after posting a rise in cash profit during the first quarter.

" We're taking a view that the environment we're working in continues to be volatile and a little uncertain."
Shayne Elliott, Chief Executive Officer, ANZ

ANZ confident on operations, warns on conditions

Speaking to BlueNotes on video, ANZ CEO Shayne Elliott said the bank would undoubtedly face challenges as a result of the slowing global economy, especially in south east Asia.

“We're taking a view that the environment we're working in continues to be volatile and a little uncertain," he said.

“The best thing we can do to be prepared for that is be really tightly managed in terms of our resourcing."

In the three months to December 31, ANZ posted a cash profit of $A1.85 billion, a 5 per cent improvement on the average of the third and fourth quarters of the 2015 financial year.

Elliott said ANZ's underlying businesses would continue to be strong but the bank remains wary of controlling its costs.

“[Cost management] will continue to be a focus," he said. “But equally it's about capital efficiency and making sure every dollar of our capital is wisely allocated."

Elliott said the strength of ANZ's retail and small business franchise were some of the highlights of the quarterly report. He also touched on credit quality in south east Asia, where manufacturers in particular have come under pressure, market anxiety so far in 2016 and the bank's dividend outlook.

Watch the video above to find out more.

Andrew Cornell is manging editor at BlueNotes

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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