ANZ positive in slower-growth environment

ANZ is confident of improving returns as it moves to address a continued slow-growth environment and reduce its exposure to under-pressure sectors, CEO Shayne Elliott says.

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“The world we’re living in at the moment is one of subdued growth,” he told BlueNotes on video. “That’s also starting to be much more true here in Australia.”

"Our focuses are on righting our own ship and getting our costs under control."
Shayne Elliott, ANZ CEO

“I don’t think that’s a short term thing so we want to be prepared for that slow-growth environment. Our focuses are on righting our own ship and getting our costs under control.”

ANZ positive in slower-growth environment

In the nine months to June 30, ANZ posted a cash profit of $A5.2 billion. 

Speaking after the release of the third-quarter update, Elliott said the bank continued to grow despite a big shift in its balance sheet.

“We’re still growing and we’re still lending more to customers and segments where we feel positive,” he said. “But at the same time we need to reduce our exposure to some of the other sectors and net-net that actually means we’re down in terms of risk-weighted assets. That’s the right thing to do from a capital efficiency point of view.”

Elliott stressed the move was not about getting the bank out of Asia.

“There’s going to be a little bit of risk-weighted asset and balance sheet shrinkage in Asia at the moment. A lot of that is to do with the fact that commodity prices are down and therefore the value of what we are financing has come down naturally,” he said.

Finding the correct balance around mortgage rates was also a priority for the bank, Elliott said, a week after the Reserve Bank of Australia brought the cash rate to a record low.

He also addressed the long-term shape of ANZ’s structure, credit quality and bank reputation. Watch the video above to find out more.

Andrew Cornell is managing 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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