In 2008 profit was $413 million, up 52%, highlighting the strong progress being made in executing a strategy to transform the scale of ANZ’s business in Asia and build a super regional bank with Asia Pacific contributing 20% of Group profit by 2012.
ANZ aims to be a top four foreign bank in the strategically important markets of Greater China and India and a top four domestic bank in the significant markets of Indonesia, Vietnam and Malaysia.
ANZ has expanded its focus from Australian and New Zealand linked customers in Asia to whom we have traditionally provided banking, to now include local affluent and small-to-medium enterprise retail customers, local corporates in key markets, Asian regional corporates, banks and investors, and well-rated European and United States corporates trading and investing in Asia.
In 2008, revenue growth was up 46% while costs grew 46%, reflecting continued investment in organic growth. ANZ started building out its businesses to support growth plans in Vietnam and Indonesia in 2008. We opened a new flagship branch and headquarters for our Indonesian business in Jakarta and gained a licence for local incorporation in Vietnam which will allow us to expand our branch network and compete equally with local banks in this priority market.
The Institutional business in Asia has also been built out over the past year, including significant expansion of the dealing rooms in Singapore and Hong Kong.
We continued to develop our Retail business in Asia Pacific and during 2008, eight new branches were opened, and 111 ATMs were installed along with the addition of new products and capabilities. Work is also underway on developing our Wealth proposition in Asia Pacific.
ANZ is investing in new systems to support growth in Asia, including a new banking platform that was implemented in Laos and Indonesia in 2008.
Across the Asia Pacific business, 1086 new staff were added including key leadership appointments which have increased management depth and built new capabilities with Asian market insiders.
Investments in partnerships in Asia are continuing to create value. In Malaysia, ANZ reached agreement with AmBank to establish a foreign exchange, interest rate and commodities derivatives business. In Indonesia, we assisted PT Panin Bank to introduce new credit card and cash management products.
Strong progress is being made with ANZ’s growth strategy in the region. Stronger results are anticipated from the investments we are making in Asia Pacific.
