The deal comes in the wake of the bank’s decision in October to sell the pension and investment part of its wealth business to IOOF. The total proceeds from the sale – which will see the bank enter a two-decade alliance with the other parties – are $A3.825 billion.
Elliott said the sale would leave ANZ a slightly smaller company from an earnings perspective.
“But in terms of returns, the returns on that capital really don't change the whole lot,” he said. “It's kind of net-square from that perspective. “
Considering the proceeds of the sale, Elliott said the bank would be assessing its total capital position and said if there was excess there were “options to return it”.
“Generally those things would be through either dividends - although our ability there would be constrained by franking- or potentially through buybacks of some description,” he said.
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Andrew Cornell is managing editor at bluenotes