ANZ is halfway through a multi-year “transformation” that is creating a more “agile” business with a renewed focus on its Australian and New Zealand operations, says chief executive Shayne Elliott.
ANZ has reported a net profit after tax (NPAT) of $6.4 billion for the 12 months to 30 September 2017, narrowly missing the market consensus.
The result was trumpeted by the bank’s chief executive, Shayne Elliott, as part of a “transformation” process that will see ANZ become more focused on “execution and speed”.
But according to a UBS analyst note released yesterday afternoon, the underlying result of cash NPAT at $6.938 billion was "softer than expected".
Cash basis EPS was up 17 per cent to 237.1 cents, missing the market consensus by 1 per cent, said UBS's John Mott in the note.
However, Mr Mott noted that the bank's bad and doubtful debts were "very low" at 16 basis points, now sitting at their lowest level since the recovery from the 1991 recession.
The last financial year saw ANZ offload its Asian retail and wealth businesses in November 2016 as well as sell its pensions and investments business to IOOF earlier this month.
ANZ has also cut its full-time equivalent staff by more than 5,000 people to 44,896, down from 50,152 in 2015.
“We’re really making sure that we put our resources — whether they are intellectual resource, our financial resources — to work where we can make a difference and we can win,” Mr Elliott said.
The bank’s return on equity has increased to 11.9 per cent (up from 10.3 per cent) and its core equity tier one (CET1) ratio has increased from 9.6 per cent in 20 September 2016 to 10.6 per cent today.
The 10.5 per cent CET1 ratio has been reached “two years ahead of [APRA’s] schedule”, Mr Elliott said.
“So we’re very, very well capitalised. And why is that important? Because it gives us more options about the future than perhaps some in our peer group.”
ANZ intends to focus on its digital channels and “lead the payment revolution”, with agreements already in place with Android Pay, Apple Pay, Apple Watch Pay, Fitbit Pay and Samsung Pay.
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