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ANZ reshaping paying off: Elliott

ANZ CEO Shayne Elliott says the bank’s move to reshape its business is beginning to deliver after lower costs and improved credit quality drove it to a stronger full-year profit.

" I’m really pleased with the pace and the degree of the transformation." - Shayne Elliott, ANZ CEO

Speaking to bluenotes on video, Elliott said the result showed ANZ had made tremendous progress since recognising the need to transform its business – while he flagged further moves in a “fast-changing world”.

“It’s really showing the strategy we have and the execution focus is delivering,” he said. “I’m really pleased with the pace and the degree of the transformation.”

Elliott said the bank was also well ahead of regulatory targets in growing capital.

ANZ reshaping paying off: Elliott

ANZ posted an 18 per cent rise in cash profit during the full year to $A6.9 billion, on the back of a reduction in absolute costs for the first time since 1999.

There were still questions around revenue growth in the industry at this point in the cycle, Elliott said, and ANZ was committing resources toward preparing for that.

“The reality is it’s hard out there,” he said. “It’s a competitive market. We’ve got our traditional competitors, new competitors and consumers are voting with their feet.”

“[It’s] tough times, but that’s exactly why we’re in this transformation phase.”

Elliott said ANZ was more than halfway through its shift in approach – whilst insisting change was not a skill the bank wanted to forget – and already meets ‘unquestionably strong’ capital regulatory requirements, two years ahead of schedule.

“The good news for ANZ and our shareholders is we’re already there,” he said. “We’re very, very well capitalised.”

Elliott also touched on the bank’s solid EPS result and the bank’s plan for the proceeds of it rebalancing – which may include capital management such as a share buyback. 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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