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ANZ institutional strategy on track: Whelan

ANZ is making headway in the simplification of its institutional bank offering and a new strategy has received board approval but market conditions remain challenging, according to business head Mark Whelan.

Speaking to BlueNotes on video, Whelan, ANZ Group Executive, Institutional said conditions in the market have stabilised and are unlikely to significantly deteriorate further, a positive development in an environment of low interest rates, margins and high regulatory costs.

" We haven’t seen any significant new big issues, it’s more working through the ones we have on the sheet."
Mark Whelan, ANZ Group Executive, Institutional

He said the new strategy and business simplification are beginning to show results and the division was on track for returns “well above our cost of capital”.

“We are really focusing on the industries that create value for us, where we’re very good – agri, resources, funds and banks, areas where we see some growth, health and technology.” Whelan said.

“We want to sharpen our focus on our core customers… declutter our client base.”

ANZ institutional strategy on track: Whelan

Whelan said falling interest rates and margins continue to hurt although the pace of the latter was dropping. High regulatory costs remain. Credit quality though is a better story.

“Credit quality is interesting… I think that’s stabilising too,” he said. “We haven’t seen any significant new big issues, it’s more working through the ones we have on the sheet.”

He also touched on the customer reaction to business simplification and continuing difficult conditions in Asia. 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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