ANZ wealth chief Joyce Phillips leaves after restructure
In this article (5)
Chief executive Shayne Elliott said the group was simplifying its approach to wealth management, which includes the bank’s insurance, superannuation and investments products.
As a result of the changes, Ms Phillips, who led ANZ’s wealth, marketing and innovation divisions, will leave.
ANZ Bank’s wealth chief, Joyce Phillips
“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.
The moves, foreshadowed by Street Talk, comes after ANZ appointed Google’s Australian boss, Maile Carnegie, to the newly created position of group executive for digital banking.
Reporting to Mr Elliott, Ms Carnegie will have responsibility for digital projects, innovation and “strategic relationships” with the fintech sector that is seeking to challenge the power of the big four banks.
Mr Elliott said the wealth division had achieved a “significant amount” under Ms Phillips’ watch since it was formed in 2012.
ANZ’s global wealth arm posted a net profit of $601 million during the last financial year – an 11 per cent increase from 2014. The division contributed less than 10 per cent of ANZ’s profits.
“As a result of the changes, Ms Phillips, who led ANZ’s wealth, marketing and innovation divisions, will leave.”
In an internal company interview, Mr Elliott said the bank wanted to “really maximise” the 10 per cent of group capital that was currently locked in the wealth division.
“It is going to be material in the terms of the impact on the wealth business but for shareholders, given that it’s only 10 per cent, it will be a good thing but it’s unlikely that it’s going to be a dramatic outcome for shareholders,” he said.
The restructure will see wealth effectively move into ANZ’s retail business. ANZ’s private bank division will report to Fred Ohlsson, group executive Australia and ANZ Financial Planning will transition to be part of the retail distribution arm.
The group’s New Zealand wealth business will fall into the expanded retail, business banking and wealth division.
Wealth in Asia will join Retail Asia, while the group’s remaining insurance, superannuation and investments activities in Australia will be rebranded Australia Wealth. Alexis George, ANZ’s managing director of insurance, will head the business and report to Mr Elliott.
Sources said the break-up of the wealth division could be seen as a precursor to a potential sale in the next 12 months.
ANZ has looked at stepping up a process of divestments. Last year, the bank sold its Esanda dealer finance unit to Macquarie Group for $8.2 billion. It is also reviewing its non-controlling interests in Asia.
ANZ shares have fallen 35 per cent in the past 12 months to $23.07, compared with the 17 per cent fall of the benchmark S&P/ASX200.
Questions & Answers
Q.What was the financial performance of ANZ's global wealth arm last year?
What was the financial performance of ANZ's global wealth arm last year?
ANZ's global wealth arm posted a net profit of $601 million in the last financial year. This represented an 11 per cent increase from its performance in 2014.
Q.Why is ANZ simplifying its approach to wealth management?
Why is ANZ simplifying its approach to wealth management?
The bank is simplifying its approach to improve returns and capital efficiency from its insurance, superannuation, and investments products. This is partly due to higher regulatory capital requirements.
Q.Where will ANZ's various wealth divisions be integrated following the restructure?
Where will ANZ's various wealth divisions be integrated following the restructure?
The wealth division will move into ANZ’s retail business. The private bank will report to Fred Ohlsson, and ANZ Financial Planning will join the retail distribution arm. New Zealand wealth will fall into an expanded retail, business banking and wealth division, and Wealth in Asia will join Retail Asia.
Q.Who will now head the rebranded Australian insurance, superannuation, and investments business?
Who will now head the rebranded Australian insurance, superannuation, and investments business?
Alexis George, ANZ’s managing director of insurance, will head the rebranded Australia Wealth business. She will report directly to the bank's chief executive.
Reader pulse
Is ANZ's restructure a good move?
20,576 votes so far