ANZ's $1.7 billion December quarter

ANZ market volatility australian securities exchange financial crisis global financial crisis chief executive interest rates

17 February 2012
| By Mike Taylor |

Just days after announcing significant job cuts, the ANZ has announced a December quarter statutory profit after tax of $1.7 billion.

However like all the other major banking groups, ANZ reported that its wealth management divisions had struggled amid continuing market volatility.

The December quarter update, released to the Australian Securities Exchange (ASX) today, saw the banking group's chief executive Mike Smith claim that although the business in Australia was tracking reasonably well, it had to continue adapting its business model in the domestic and international environment, particularly in both retail and wealth.

"The environment for banking internationally has become significantly more challenging following the first phase of the global financial crisis," he said.

"Bank funding costs are continuing to rise as the deepening economic and financial crisis in Europe causes dislocation and volatility in global markets, although prospects are brighter in the United States."

The ANZ chief executive said he did not believe there would be a return to the level of credit growth that banks experienced pre-crisis for the foreseeable future as consumers reduced their spending and businesses paced their investments.

Pointing to the challenging environment being encountered by ANZ, Smith said the banking group's recent decisions on interest rates and how many people it employed "reflects a need to transform our business in new and often painful ways".

The ANZ December quarter analysis referred to wealth in terms of volumes in E*Trade and funds under management in the wealth management space having been "impacted by volatile market conditions".

"Claims experience in the insurance business was also adverse for the quarter," it said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

1 month 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 months 2 weeks ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

6 days 5 hours ago

Lonsec has appointed a new chief executive for its research and ratings division as Mike Wright takes up a new role in light of the acquisition of Evidentia Group by Lons...

1 month ago

The Financial Services and Credit Panel has cancelled the registration of an NSW adviser for two years as it felt he displayed a ‘level of incompetence’ in providing advi...

1 month ago

TOP PERFORMING FUNDS