ANZ Banking Group (ANZ) has reshaped its business model, which will eventually lead to the creation of a global wealth management division.
However, ANZ’s joint venture with asset management giant ING would not end as a result of the creation of a new wealth management arm, an ANZ spokesperson told InvestorDaily.
The division was as yet unnamed and ANZ could not say when it would be established.
The announcement came after ANZ revealed a restructure aimed at reducing workplace bureaucracy and complexity.
“The focus is on simplifying middle management without impacting staff who serve customers in branches or call centres,” the ANZ spokesperson said.
“We expect that as a result of a restructure that there will be some roles that are no longer needed.”
The spokesperson did not say how many people would lose their jobs, but said ANZ was looking at reducing the layers of management to seven from 12.
It is unknown if those managers would be given redeployment opportunities, the spokesperson said.
As part of the restructure, ANZ’s existing wealth management business, including its joint venture with ING and private banking division, will be part of the lender’s Australian division.
A separate Asia-Pacific division will develop ANZ’s Asian wealth management arm.
“The reasoning behind the new model is to complement ANZ’s strategy to become a super-regional bank,” the spokesperson said.
The restructure follows a big drop in ANZ’s share price following a late July announcement of $1.2 billion in bad debt provisions, which are expected to shred up to 25 per cent of the lender’s cash earnings.
