Jablko: ANZ happy with capital position; has flexibility

" When we look at our capital position we’re pretty pleased with where we are."
Michelle Jablko, ANZ CFO

Speaking to BlueNotes on video, Jablko said the ongoing structural changes at ANZ, including reducing risk-weighted assets in its institutional business, had paid off.

“When we look at our capital position we’re pretty pleased with where we are,” she said. “Having more capital actually has had some negative impact on RoE but it does give us more flexibility for the future.”

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 bank’s pro-forma return on equity came in 130 basis points higher than last year.

“We’ve really been focused on productivity across the group and costs are down 1.5 per cent on the second half of last year,” Jablko said. “On top of that we’ve also had the benefit this half of lower provisions.”

She said credit quality across ANZ’s business had been broadly the same as it had been in the second half of last year.

Jablko said the bank’s decision to strengthen its balance sheet and improve its risk-adjusted returns had impacted its margins somewhat.

“On top of that market conditions are pretty competitive and I expect that to stay the case,” she said.

Jablko also touched on the benefits of the bank’s divestment program, as well as dividend and capital management. Watch the video above to find out more.

Andrew Cornell is managing editor at BlueNotes