Tag: ANZ

ASIC commences civil penalty proceedings against ANZ for BBSW conduct

ASIC has today commenced legal proceedings in the Federal Court in Melbourne against the Australia and New Zealand Banking Group Limited (ANZ) for unconscionable conduct and market manipulation in relation to the ANZ’s involvement in setting the bank bill swap reference rate (BBSW) in the period March 2010 to May 2012.

The BBSW is the primary interest rate benchmark used in Australian financial markets, administered by the Australian Financial Markets Association (AFMA). On 27 September 2013, AFMA changed the method by which the BBSW is calculated. The conduct that the proceedings relate to occurred before the change in methodology.

It is alleged that ANZ traded in a manner intended to create an artificial price for bank bills on 44 separate days during the period of 9 March 2010 to 25 May 2012.

ASIC alleges that on these days ANZ had a large number of products which were priced or valued off BBSW and that it traded in the bank bill market with the intention of moving the BBSW higher or lower. ASIC alleges that ANZ was seeking to maximise its profit or minimise its loss to the detriment of those holding opposite positions to ANZ’s.

ASIC is seeking declarations that ANZ contravened s.12CA, s.12CB and the former s.12CC of the Australian Securities and Investments Commission Act 2001 (Cth), s.1041A of the Corporations Act 2001 (Cth) (Corporations Act), and s.912A of the Corporations Act.

Further, ASIC has sought from the court pecuniary penalties against ANZ and an order requiring ANZ to implement a compliance program.

ANZ in turn today rejected allegations regarding bank trading and the bank bill swap rate (BBSW) made in this afternoon’s statement of claim by the Australian Securities and Investments Commission (ASIC).

ANZ will vigorously defend legal action brought by ASIC. Since mid-2012 ASIC has been investigating the practices of 14 panel bank participants in the Australian interbank BBSW market covering the period 2007 to 2012. ASIC’s statement of claim in relation to ANZ covers to the period March 2010 to May 2012.

ASIC has advised ANZ that it has no concerns about the bank’s current market practices and ANZ notes there has been no allegation of collusion between it and other institutions. ANZ Chief Risk Officer Nigel Williams said: “We have cooperated fully with ASIC’s investigation over many months, at a cost of many millions of dollars. This includes actively seeking to resolve the Commission’s concerns since January 2015. “We believe the Commission’s statement of claim is based on a misunderstanding of how bank bill issuance and interest rate risk management operates and the limited case law which applies to this area. “Our practices in the BBSW market were consistent with Australian market practices in wholesale financial markets and we reject ASIC’s characterisation of the transactions in question.

“Chat messages between traders is an issue that we will continue to review. We have already dealt with chats and behaviours that breach our Code of Conduct through internal disciplinary action against the individuals involved. “Since June 2014 we have also engaged ASIC about chat messages between ANZ traders. We do not agree however with ASIC’s characterisation of the issues related to the chat messages. It is now for the Courts to provide clarity on trading practices,” Mr Williams said.

ASIC’s legal action is likely to take a considerable time to reach a resolution through the Courts and the matter of penalties is uncertain.

ANZ simplifies its approach to wealth management

ANZ today announced it will simplify its approach to wealth management, more closely aligning the distribution of wealth products and services with its Retail and Commercial businesses and focussing its insurance, superannuation and investments product business in Australia on improving returns and capital efficiency.

ANZ Chief Executive Officer Shayne Elliott said: “Over the past decade ANZ has made significant investments in its insurance, superannuation and investments business to consolidate its position as a leading player in Australia and New Zealand with strong market shares in key segments.

“These changes generate more value for our 8 million customers by making it simpler and more convenient to access wealth solutions through closer coordination and alignment of our wealth and retail products. The changes help us unlock more potential from wealth and reduce complexity, duplication and cost across our business.

“The simplified approach also provides the opportunity to focus on improving returns and capital efficiency from our insurance, superannuation and investments product business given higher regulatory capital requirements,” Mr Elliott said.

As part of simplifying the approach to wealth management, Joyce Phillips Group Executive Wealth, Marketing and Innovation will be leaving ANZ to pursue her successful financial services career.

Mr Elliott said: “Under Joyce’s leadership the Wealth Division has achieved a significant amount since it was formed in 2012. In that time Joyce has built a great reputation for Wealth through its consistently strong business performance, improved governance and compliance and though market-leading innovations such as goMoney, Grow and Smart Choice Super. Joyce has also made a major contribution through her leadership of Marketing including significantly increasing the value of the ANZ brand in the region and our recent Equal Futures initiative. I thank her for her many contributions to building a better business for our customers and I wish her every success with her future career.”

Other changes effective from 12 March to simplify ANZ’s approach to wealth are:

  • In Australia, Private Bank will report to Fred Ohlsson, Group Executive Australia and ANZ-branded distribution including ANZ Financial Planning will transition to be part of Retail Distribution reporting to Catriona Noble.
  • In New Zealand, wealth will be part of an expanded Retail, Business Banking and Wealth team reporting to John Body.
  • In Asia, Wealth will join Retail Asia reporting to David Hisco, Group Executive and CEO New Zealand.
  • ANZ’s remaining Insurance, Superannuation and Investments activities in Australia will be formed into a focussed business to be known as Australia Wealth. Alexis George, currently Managing Director Insurance, will lead the business as Managing Director reporting to Mr Elliott.

Maile Carnegie to join ANZ as Group Executive Digital Banking

ANZ today announced the appointment of Maile Carnegie to the role of Group Executive Digital Banking reporting to Chief Executive Officer Shayne Elliott.

Maile joins ANZ from Google where she has been Managing Director Australia and New Zealand since 2013. Previously she was Managing Director for Procter & Gamble in Australia and New Zealand having worked at Procter & Gamble for over 20 years including as General Manager for Asia Strategy, Marketing and Design based in Singapore and in senior marketing and commercial roles in the United States.

At ANZ Maile will lead the strategic development and delivery of a superior digital experience for the bank’s eight million retail, commercial and institutional customers, as well as for its staff. This includes digital projects, innovation and strategic relationships with the FinTech sector. Reflecting digital’s importance to ANZ’s performance, Maile will also have shared responsibility for the financial results of the bank’s Australian and New Zealand Divisions.

Maile will be a member of the Group Executive Committee and have Group responsibility for Marketing including ANZ’s brand, advertising and sponsorship.

Commenting on Maile’s appointment Mr Elliott said: “Digital banking is at the heart of our strategy to create a superior experience for our customers and our people.

“We have a great digital foundation with applications such as GoMoney and FastPay and the recent redevelopment of anz.com. Maile’s appointment recognises that digital is central to driving revenue growth and to successfully competing in a changing and disrupted environment where technology and brand are key sources of differentiation.

“Part of Maile’s role will also be to shift our thinking and champion a Group-wide innovation culture at ANZ based on developing and attracting service-focused, technology-literate, innovative and experimental people and teams. This includes being the sponsor of a new Digital Business Transformation Leadership Program created jointly by ANZ and the Massachusetts Institute of Technology.

“I am incredibly pleased to have Maile join us. Her experience at Google, her track record in building brands and business in Australia and in Asia, and her leadership”

ANZ collaborates with start-up Honcho to help small businesses get started

ANZ has today announced its collaboration with Honcho by Business Switch an online platform offering customers the opportunity to set up their small business in one day, along with tools to help their business grow.

Using the tool, Business Ready powered by Honcho, customers can register their ABN, business and domain name, set up a simple website, email addresses and ANZ business bank accounts without having to visit multiple websites and suppliers.

ANZ Managing Director Corporate and Commercial Banking Mark Hand said: “Each year in Australia around 300,000 small businesses are set up and one of the biggest frustrations our customers have is it takes weeks to get started and they often don’t know what steps to take next. This tool is a simple, efficient and cost effective solution that guides customers through the process. “Combined with our $2 billion dollar pledge for new small businesses and discounted banking packages, our Business Ready initiative is another way ANZ is providing ongoing support from the start-up phase through to the growth phase and beyond,” Mr Hand said.

Honcho Chief Executive Officer Matthew Abrahams said: “We chose to work with ANZ because of its commitment to small businesses and our shared goal of making life easier for small business owners. “The single biggest issue that new small businesses face is time. Being able to fast track starting up a business from weeks to hours with only a small capital outlay enables people to start earning revenue faster and to concentrate on building their customer base,” Mr Abrahams said.

ANZ Q1 2016 Trading Update Highlights Mixed Conditions

ANZ today announced an unaudited cash profit of $1.85 billion for the three months to 31 December 2015. Earnings momentum continued in the quarter with cash profit up 5% compared to the average of the third and fourth quarters of the 2015 Financial Year (FY15). Statutory net profit was $1.6 billion.

Income grew at a faster rate than expenses, with expenses well contained; technology investment and wage inflation were largely offset by a 2.5% reduction in staff numbers.

The Group Net Interest Margin (NIM) was stable excluding the impact of the Markets business; there was a 2 basis points decrease including Markets.

Retail and Commercial. Retail in Australia and New Zealand continued to perform well led by further market share gains in home lending in key markets. Small Business in both markets grew strongly while Corporate Banking income was impacted by higher funding costs and competition. Wealth benefited from stable Life Insurance lapse rates which were offset by investment market volatility.

Institutional. Markets income increased 6% to $553 million. Customer sales comprised 56% of Markets’ total income in line with the average for both the second half and FY2015. Cash Management performed well and the Group further reduced lower returning assets in Trade and Lending. Institutional NIM improved reflecting actions around asset mix and deposit pricing.

The total provision charge for the first quarter 2016 was $362 million (individual provisions $319 million; collective provisions $43 million). The total Group credit charge will be a little above $800 million this half compared to current market consensus of $735 million1. Gross Impaired Assets for the half will be broadly similar to the second half of 20152 despite falling in the first quarter.

APRA Common Equity Tier 1 (CET1) ratio was 9.4%6 at 31 December 2015. Excluding the impact of the 2015 final dividend payment, the CET1 ratio increased 45 basis points compared to 30 September 2015 primarily driven by organic capital generation and assisted by the Esanda portfolio sale.

 

ANZ Mobile Pay helps customers tap and pay

ANZ today launched its own mobile payments app giving customers the freedom to tap their phone for purchases and cash withdrawals in a quick and secure format. Customers with an Android smartphone can download ANZ Mobile Pay from today and turn their phone into a virtual credit or debit card with the broadest range of cards on offer.

ANZ Managing Director Products and Marketing Matt Boss said: “This new app is another demonstration of ANZ’s commitment to providing customers with innovative solutions to make their lives easier.

“ANZ Mobile Pay delivers a payments solution for our customers to help them take full advantage of the rapidly changing digital environment we live in, including the ability to withdraw cash from contactless-enabled ANZ ATMs with a tap of their phone.

“Customers using ANZ Mobile Pay will be able to add their existing credit or debit card, and then simply tap their mobile phone for purchases at contactless retail locations anywhere in the world with the security we provide for all online and digital transactions,” he said.

“Given Australians are already the most prolific users of contactless payments in the world and the fact that Android is a major player in the local smartphone market, we believe ANZ Mobile Pay will be a popular addition for many of our customers.”

ANZ Mobile Pay allows customers to:

  • Add a range of ANZ Visa and American Express® credit cards, as well as ANZ Visa Debit cards
  • Choose the way you pay with three payment options: Wake to Pay, Launch to Pay and Passcode to Pay
  • Enter your PIN for all payments over $100
  • Withdraw money at supported contactless-enabled ANZ ATMs

ANZ Mobile Pay is available for download from the Google Play store from today. Once installed, customers just need to tap their card against the phone, then enter their date of birth and mobile number, and finally choose their preferred payment option

ANZ extends partnership with Macquarie to provide wrap solutions

ANZ today announced it has entered into an agreement for Macquarie Investment Management Limited to develop a new wrap platform for ANZ’s advice partners that will be available from May 2016.

As part of the agreement, Macquarie will also provide administration services that are currently delivered through ANZ’s wholly owned business, Oasis.

As services are transitioned to Macquarie, staff numbers in the Oasis business will be progressively reduced over the next 18 months. At the end of the transition the majority of services provided by the 146 roles currently supporting the Oasis business will be provided by Macquarie.

ANZ Managing Director Pensions and Investments Peter Mullin said: “Detailed plans are being developed to support staff during the transition, which ensures they have time, support and notice to consider other options. Their entitlements are protected and a full range of career support services will be provided.

“The decision to partner with Macquarie was made following an extensive business and market review and is the right decision for our customers. We are now focussed on making sure the transition to the new business is done in a respectful and well-organised manner,” Mr Mullin said.

Oasis currently has $6.9 billion in funds under management and serves more than 50,000 customers. Transition of the Oasis wrap platform to Macquarie’s technology and administration services is expected to take up to 18 months.

ANZ Announces New Team, and Focus (+Digital)

ANZ Chief Executive Officer Shayne Elliott today announced changes to the bank’s senior leadership team to improve focus on its retail, commercial and institutional customers. Commenting on the changes Mr Elliott said: “ANZ has terrific retail and commercial businesses in Australia and New Zealand and we have a great global institutional bank servicing regional trade and capital flows.

“These changes simplify how we work internally and allow us to bring greater focus to what we do uniquely well for our customers. The aim is to ensure we successfully compete in a world where connectivity and digital are more important to customers than ever before and where community expectations have never been higher,” he said.

Announcing the changes, which are effective from Monday 1 February, Mr Elliott also set out a number of medium-term priorities for ANZ:

  • Delivering value for customers through more innovative, convenient and engaging financial services.
  • Being Australia’s only truly regional bank by delivering solutions for customers through a more focussed, better connected international network.
  • Continuing to build a strong, cohesive culture known for ethics, values and fairness.
  • Delivering consistently strong financial results for investors balancing growth and return.

“The new structure brings greater clarity to what we do best for our customers with a leadership team that reflects a diverse mix of experience and new talent from inside and outside ANZ,” Mr Elliott said.

Institutional

  • Mark Whelan – Group Executive, Institutional with responsibility for Institutional Banking. Mr Whelan is one of ANZ’s most experienced executives having most recently been CEO Australia. Formerly Mr Whelan was Managing Director Commercial Australia and his previous roles include Managing Director Institutional Asia Pacific, Europe and America based in Hong Kong, and Joint Managing Director Global Markets.
  • Farhan Faruqui, Group Executive, International reporting to Mr Whelan and based in Hong Kong, will have responsibility for ANZ’s Institutional business in Asia, Europe and America. He will also join ANZ’s Executive Committee reflecting the strategic importance of Asia to ANZ’s future success.

Retail and Commercial

  • Fred Ohlsson – Group Executive, Australia with responsibility for Retail and Commercial Banking in Australia. Mr Ohlsson comes to the role from ANZ New Zealand where he has been Managing Director, Retail and Business Banking since 2013. He has worked in a range of senior roles at ANZ since 2001 including General Manager Commercial Products (Australia) and General Manager Products and Marketing for Esanda
  • David Hisco – Group Executive and CEO, New Zealand. Mr Hisco will continue in his role as Chief Executive Officer, ANZ Bank New Zealand Limited and will have additional responsibility for the Pacific (excluding Papua New Guinea), given its strong New Zealand linkages, and for ANZ’s retail business in Asia.
  • Joyce Phillips – Group Executive, Wealth, Marketing and Innovation with responsibility for ANZ’s insurance, investments and private banking businesses, as well as Group Marketing and Innovation.
  • A new role of Group Executive, Digital Banking will be established with responsibility for ANZ’s digital transformation. An external appointment to the role is expected to be announced in the coming months.

Other members of ANZ’s Executive Committee continuing to report to Mr Elliott are:

  • Graham Hodges – Deputy Chief Executive Officer who will have responsibility for ANZ’s international partnership investments in Indonesia, Malaysia, China and The Philippines. Mr Hodges will also remain Acting Chief Financial Officer. The internal and external search for a new Chief Financial Officer is well advanced and is expected to be finalised in the coming months.
  • Susie Babani – Chief Human Resources Officer
  • Alistair Currie – Chief Operating Officer
  • Nigel Williams – Chief Risk Officer

As part of the changes Gilles Planté, Deputy CEO Institutional and International Banking, Managing Director Business Portfolio Management and a member of ANZ’s former Management Board will be leaving ANZ.

DFA observes that the new GE Digital Banking is interesting, given that digital touches every aspect of banking and their customers. How will digital capabilities be overlaid on the existing operations?

ANZ teams up with Google to bring Android Pay to Australia

ANZ today confirmed it will offer Google’s Android Pay to its customers allowing them to make contactless payments with their Android phone, after being named an Australian launch partner for the mobile payment platform.

By mid next year, ANZ debit and credit cardholders in Australia will be able to use Android Pay to make quick and secure purchases wherever contactless payments are accepted. Android Pay also allows for in-app payments as well as storing gift cards, loyalty cards and special offers.

ANZ Managing Director Products and Marketing Matt Boss said: “This is an important milestone in the evolution of the mobile payments landscape and Google’s decision to make Australia one of the first markets after the United States to implement Android Pay demonstrates how quick Australians adopt new technologies.

“Australians are already the highest users of contactless payments in the world and given the dominance of Android in the local smartphone market, it made sense for us to partner with Google on the introduction of Android Pay into Australia.

“Android Pay will provide our customers with a quick and secure way to make payments with their smart phone and we think it will have strong uptake given the ability to incorporate additional features such as gift and loyalty cards,” Mr Boss said.

ANZ also confirmed that it will be launching its own mobile wallet for Android in the first quarter of 2016, offering customers a choice of solutions.

More than 60% of all card transactions in Australia are now contactless and accepted across a network in excess of 70% contactless merchant payment terminals. For more information on Android Pay visit www.android.com/pay

ANZ Launches Australia’s first Home Loan Centre

ANZ today continued its expansion in NSW opening Australia’s first dedicated Home Loan Centre. Located at Westfield in Parramatta, the centre will provide customers with a specialist service to improve the process of obtaining a home loan.

ANZ Managing Director Retail Distribution Australia Catriona Noble said: “We understand that buying a house is usually the single biggest investment people make and we want to remove some of the stress associated with organising a home loan.

“By creating a dedicated space for home loans, customers will have access to a team of specialists in an environment not usually associated with a bank. We’ve designed this to look and feel like a typical home and we’re confident this will resonate strongly with our customers.

“Our two Home Loan Centres in New Zealand have been incredibly successful helping thousands of New Zealanders into a new home since late 2014. We expect our centre in Western Sydney to be equally well received,” Ms Noble said.