ANZ strategy delivering improved returns: Elliott

" We’re going to continue to focus on those areas where can win; we’re going to continue to invest in digital."
Shayne Elliott, ANZ CEO

Speaking after the announcement of the result, Elliott told BlueNotes on video the bank would continue to concentrate on its goals around rebalancing its business portfolio and improving customer experience.

“We’re going to continue to focus on those areas where can win,” he said. ‘We’re going to continue to invest in digital and having better solutions for our customers.”

“And we’re going to continue to rebalance our portfolio, whether that’s to do with our cost outcomes… or our capital allocations.”

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 result also benefitted from a further decline in absolute costs in the business.

Elliott said a shift in the bank’s capital balance from the institutional business into the commercial and retail side was a permanent one and he felt the balance was almost right. 

“Our responsibility is to get the balance right between those two [businesses],” he said. “They have very different characteristics.” 

“We think the right mix is about two thirds retail and commercial and about a third in institutional. Today we’re at about 60/40 – so we’re getting closer and closer to that desired end state.”

He said capital generation was one of the strengths of the result with ANZ’s core capital now above 10 per cent for the first time giving the bank flexibility ahead of further regulatory changes.

Elliott also touched on the bank’s success in preparing for the revenue slowdown and increased capital requirement previously forecast. Watch the video above to find out more.

The result comes as ANZ unveils a new operational approach in a move aimed at improving the way the bank responds to customer needs and empowers its staff

Andrew Cornell is managing editor at BlueNotes