ANZ backs down from wealth in Australia

ANZ is considering exiting its wealth business in Australia following its selling off of retail and wealth operations in Asia earlier this week.

03-Nov-2016

By Daniel Paperny

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ANZ has announced it may retreat from its wealth business in Australia following its selling off of retail and wealth operations in Asia earlier this week.

Commenting on the announcement, ANZ chief executive Shayne Elliott said the bank had previously advised that it was conducting strategic reviews of the group’s retail and wealth business in Asia, as well as its wealth businesses in Australia and New Zealand.

These reviews considered each business within the context of the overall group strategy including capital efficiency, he said.

“The strategic review of ANZ’s wealth businesses in Australia and New Zealand concluded that while the distribution of high quality wealth products and services should remain a core component of the group’s overall customer proposition, ANZ does not need to be a manufacturer of life and investments products,” Elliott said.

The bank confirmed possible options for the wealth arm included the sale of the life insurance, advice, investments and superannuation businesses in Australia.

"ANZ will pursue a disciplined approach to this process and update the market as appropriate," the bank said.

The news regarding ANZ’s local operations came in ANZ’s Full Year 2016 results announcement which saw ANZ take a statutory profit after tax for the Financial Year ended 30 September 2016 of $5.7 billion, down 24 per cent on last year’s results.

It also recorded a cash profit of $5.9 billion, an amount that was also down 18 per cent.

ANZ also said its wealth business in New Zealand will be considered separately during 2017.

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