Subscribe

Jablko: ANZ happy with capital position; has flexibility

ANZ’s portfolio rebalancing, improved productivity and lower provisions all contributed to a strong improvement in return-on-equity for the bank in the first half, ANZ chief financial officer Michelle Jablko says.

" When we look at our capital position we’re pretty pleased with where we are."
Michelle Jablko, ANZ CFO

Speaking to BlueNotes on video, Jablko said the ongoing structural changes at ANZ, including reducing risk-weighted assets in its institutional business, had paid off.

“When we look at our capital position we’re pretty pleased with where we are,” she said. “Having more capital actually has had some negative impact on RoE but it does give us more flexibility for the future.”

ANZ posted a $A3.4 billion cash profit in the first half of its reporting year, a 23 per cent rise on the previous-corresponding period.

The bank’s pro-forma return on equity came in 130 basis points higher than last year.

Jablko: ANZ happy with capital position; has flexibility

“We’ve really been focused on productivity across the group and costs are down 1.5 per cent on the second half of last year,” Jablko said. “On top of that we’ve also had the benefit this half of lower provisions.”

She said credit quality across ANZ’s business had been broadly the same as it had been in the second half of last year.

Jablko said the bank’s decision to strengthen its balance sheet and improve its risk-adjusted returns had impacted its margins somewhat.

“On top of that market conditions are pretty competitive and I expect that to stay the case,” she said.

Jablko also touched on the benefits of the bank’s divestment program, as well as dividend and capital management. 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.

editor's picks

02 May 2017

ANZ strategy delivering improved returns: Elliott

Andrew Cornell | Managing Editor bluenotes

ANZ has delivered a strong half-year result which demonstrates consistency in execution, ANZ CEO Shayne Elliott says, adding he is optimistic for the full-year result.

02 May 2017

ANZ overhauls its organisational approach to improve customer experience

Andrew Cornell | Managing Editor bluenotes

ANZ is shaking up its management style in a move CEO Shayne Elliott hopes will improve the way the bank responds to customer needs, empower staff and improve productivity.

02 May 2017

INFOGRAPHIC: ANZ’s profit in pictures

Stephen Ries | Head of Media Relations, ANZ

Consistency in approach has delivered ANZ a 23 per cent lift in cash profit in the first half, supporting an improved return on equity.