ANZ cartel case has Australian banking in further turmoil
June 4, 2018
Australia is used to regulatory and reputational calamity, but a case against ANZ, Citi and Deutsche has taken a more personal turn.
Mike Smith’s Asia travails extend to his house
6 March 2017
The considerable wealth of Mike Smith, former ANZ CEO and long-time HSBC globetrotter, is a subject of some contention among Australian investors who feel he earned a ton of cash for eroding shareholder value during his time at the helm of the Australian bank.
DBS’s ANZ Asia wealth purchase makes sense for both sides
31 October 2016
Euromoney predicted last month that ANZ would sell its retail and wealth management businesses to a Singaporean bank; it turns out it was already in the works. Both DBS and ANZ gain from a practical deal, though it won’t be quite as simple as it looks
Shayne Elliott’s tenure as CEO of ANZ has already been marked by several strategic initiatives since he took the top job in January. None is more striking than the apparent reversal of his predecessor’s grand ambitions for Asia. Is there method in the madness of undoing years of expensive effort? And can a renewed focus on Australia deliver growth when some say the domestic industry is past its peak?
|ANZ reaches the end of the road in Asia, October 2016|
As ANZ turns to home, are the good times gone?
The multi-decade period of extraordinary plenty for Australia’s big four banks may be at an end.
Asia: New order begins to take shape
ANZ is looking for buyers for parts of its Asia business; expect local buyers to be writing cheques again.
Asia becomes embarrassing afterthought in ANZ results
The word 'Asia’ appeared sparingly in ANZ’s first half results on Tuesday, and when it did, its connotations were overwhelmingly negative. Shayne Elliott, the new CEO delivering his first earnings report to a Melbourne room full of analysts, first mentioned the world’s largest and most populous continent in the context of "tough decisions" he had had to make. One of these was a revaluation of the bank’s investment in Malaysia’s AmBank, a A$260 million impairment in recognition of the tanking Malaysian economy.
Blocked trade: Banks suffer from the decline in global flows
In November, ANZ announced it would downgrade some of its vanilla Asia trade-finance operations and focus on higher-returning products, such as supply-chain finance, after consecutive quarters of margin compression.
Cash Management Survey 2015: How to build a banking business around cash
"Over the last decade ANZ has pushed into the Asian market in a way that has been unmatched by other domestic banks. This needs a solid approach to the business, it is not possible to move out rapidly across a whole geography without having aligned partners, resources and technology to support it."
China's leaders hit the panic button
ANZ’s Liu also says the precipitous slide in stock prices since mid-June was "due to an overall lack of hunger for transparency and reform. China needs to accelerate reforms of SOEs and state-run banks. That’s the only way to create a strong equity market capable of attracting and retaining the interest of all manner of investors. My hope is that the recent market rout has forced authorities to engage in proper reform measures, openly, publicly and honestly."
The battle to bank Asia’s next corporate champions
One of the ways in which ANZ differentiates itself is the expertise it has in its home markets, according to Faruqui. "If there is a client in Asia that does business in Australia and New Zealand, where we are a substantial player, we have to dominate that corridor to make sure we provide full banking services end-to-end."
More questions than answers in the Murray Report
"If ANZ has to hold unquestionably strong levels of capital, it will become increasingly difficult for it to compete in Asia," says one Sydney-based analyst. "If you’re a CBA or a Westpac and you’re told to hold more capital, you can move your deposit rates down a little or re-price your domestic loan book. But if you’re ANZ, you can’t go to Samsung or Hutchison and say you’re hiking your trade finance pricing by 20 basis points because your local regulator wants you to hold more capital. You can re-price in a closed market, but not in an open one like Asia."