ANZ’s super regional aspiration recognises that economic growth in the developing world, particularly in Asia, will be high relative to OECD countries over the next 10 years. ANZ’s aim is to achieve sustained above-system growth domestically and keep pace with global growth by participating strongly in connected emerging economies.
Domestically, market instability flowing from the global credit crisis has created a force for consolidation, a pattern that conforms to a global trend. ANZ is alert to this trend.
The high relative growth in wealth management and personal insurance, fuelled by an aging population and the government shifting retirement responsibility to individuals will continue to have a profound impact on the financial system in coming years. In Asia, the factors driving growth include the increasing penetration of banking and higher education, employment and urbanisation.
Achieving ANZ’s 2012 aspirations will involve a significant acceleration in the growth of this part of ANZ’s wealth business.
Today, ANZ’s Wealth and personal protection businesses are its 49% investment in ING Australia and New Zealand, ANZ’s Private Bank and its specialist Investment and Insurance business.
In 2008, ANZ’s Wealth and personal protection businesses have shown reasonable growth, albeit impacted by the sharp correction to equity markets.
ING Australia’s earnings fell by 19% with the rise in operating profit of 12% being offset by lower capital investment returns. Funds under management flows were driven in part by favourable ratings and industry awards. These include retaining its number one ranking for its corporate superannuation product and receiving the ‘Life Company of the Year’ award at the AFR Smart Investor Awards.
