The result was that profit fell 65% to $526 million. Wider credit spreads, tightened liquidity conditions and the weaker economic environment led to substantial increases in credit impairment costs. In a difficult year, underlying revenue* growth, up 16%, was a highlight, with Asia, New Zealand, markets and working capital products performing well. The turnaround in underlying performance was driven by a focus on delivering tailored solutions for Institutional’s 40,000 clients in Australia, New Zealand and Asia, at a time of significant economic dislocation.
The quality of this service was again recognised in the 2008 Peter Lee Associates Large Corporate and Institutional Banking survey. ANZ retained its No. 1 Lead Relationship Bank status in Australia and had the highest overall relationship market share of any bank in Australia.
In the latter part of the year, the entire business was reviewed, and action taken to reinforce management accountability, to exit non-core product businesses and to ensure risk management was tightened.
A strategic refocus places clients firmly at the centre of all activity, with product cross-sell, efficient linkage of origination to distribution, and a stong focus on transactional and value-added products driving growth. ANZ’s competitive advantage in Asia and excellent customer franchise will be key planks in restoring the Institutional Division to its traditional strength in corporate banking.
