Perhaps Shayne Elliott needs a reminder....to restore faith in your bad bank industry
you need to compensate all victims of bank fraud and cease having fraudulent bonuses
paid into your own pockets at CEO level. To reward yourself and predecessors and
colleagues for engineering and manufacturing of crappy mortgages for two decades
is a mindbogglingly self-centered and an evil reward for criminal activity.
ANZ boss says Labor wrong to pursue vertical integration
28 April 2016
ANZ Banking Group chief executive Shayne Elliott has hit back at Labor's plan to use a banking royal commission to investigate vertical integration, saying the industry structure of the big banks is not the cause of the cultural shortcomings that have been exposed across the sector.
Speaking on the sidelines of ANZ's deal with Apple to launch Apple Pay in Australia, Mr Elliott said it was hard to understand exactly what concern Labor has about banks to justify a royal commission, but recognised the community is questioning whether banker pay could be compromising outcomes for customers.
He said that was precisely what the Australian Bankers' Association wanted to address by its independent review into remuneration, including sales commissions paid to staff. Banks fear a royal commission may result in calls for their wealth operations to be sold. "We are absolutely going to go and have a look at [remuneration] and make sure we are not doing anything untoward there, or something that might lead to bad customer outcomes," Mr Elliott said.
"In terms of vertical integration, I don't know that that in itself is the problem. It is really about how do you manage future conflicts, have you thought through incentive structures. I don't think who owns something is necessarily the issue. It may be, but I don't think in my view that is the issue. It is going to come down to those reviews on remuneration and incentives."
Mr Elliott's comments follow those made by shadow Treasurer Chris Bowen to The Australian Financial Review on Wednesday that "it is the sales culture and the sales incentives [in banks] that we are deeply concerned about".
The ANZ board met on Thursday and will continue its meeting on Friday, ahead of ANZ reporting interim results next Tuesday, the same day as the federal budget.
In his first speech to ANZ customers about the direction of the bank since succeeding Mike Smith on January 1, Mr Elliott said at a dinner on Thursday night that banks were facing challenging conditions.
These include low demand for corporate borrowing, corporate leverage remaining near all-time lows, ultra-low interest rates and rising credit costs. He also pointed to "globally stubborn cost growth relating to higher technology and compliance costs" including "the previous unwillingness of the banking industry to tackle productivity", along with "the demands from regulators for us to hold more capital and liquidity to operate our business."
If these issues are not managed, shareholder returns will be driven lower and it will be difficult for banks to invest in transitioning to a digital world, he said. Therefore, ANZ is focused on reducing product and management complexity, operating costs and risks through simplification and exiting non-core businesses, he said. "We will be announcing some of the results of this next week."
He pointed to the sale of the Esanda dealer finance portfolio and intention to sell ANZ's minority investments in Asia as examples of efforts to "significantly rebalance the allocation of capital across the group".
UBS analyst Jonathan Mott expects ANZ to exit a further $13 billion of risk-weighted assets in the full 2016 year, after ANZ ran off $9 billion of low-yielding Asian trade finance business in the fourth quarter and flagged the exit of an additional $9 billion in institutional loans below the bank's cost of capital. This will help ANZ lift its net interest margin for the half and to report lower costs, UBS predicts.
For Release: 3 April 2002
ANZ reorganises senior management around specialised businesses and strategic priorities
ANZ reorganises senior management around specialised businesses and strategic priorities
ANZ today announced a number of organisational changes to advance the development of its distinctive specialised business strategy.
ANZ will flatten its business structure to give greater freedom and development opportunities to its senior business executives. The current two divisions, Personal Financial Services and Corporate Financial Services will be unwound, together with their infrastructures. The specialised businesses will now be grouped under senior segment heads reporting directly to the CEO:
Personal Banking and Wealth Management businesses, headed by Elmer Funke Kupper
Corporate Banking businesses, headed by Bob Edgar
ANZ Investment Banking businesses (ANZIB), headed by Grahame Miller
Consumer Finance (including cards) headed by Brian Hartzer
Mortgages, headed by Greg Camm
Asset Finance, headed by Elizabeth Proust
Small to Medium Business, headed by Graham Hodges
As a logical extension of its specialisation strategy and Restoring Customer Faith program, over the next two years within the 16 specialised businesses, ANZ will create up to 200 individual profit centres. This will take decision-making closer to the customer and will expand the opportunity for talented people to manage businesses within the Group. With the increased decentralisation of the business, there will be a corresponding strengthening of the Group centre, which will now play a more active role in strategic development, business portfolio management, senior customer representation, capital and expense allocation, performance management, risk management, and people and cultural development across the company:.........