Despite flat profit growth year-on-year for the division, performance improved half on half, reflecting better performance in insurance and investment earnings and a decline in costs for the period ending 30 September 2012.
Funds under management (FUM) increased 6 per cent for the division with New Zealand performing strongly up 15 per cent.
The new business, which was formed earlier this year, encompasses wealth management, insurance, private banking and E Trade online broking.
ANZ chief executive Mike Smith was clearly pleased with the results. “The second half results are encouraging, they have improved, [we] have gone through a fair amount of reorganisation and are becoming much more focused. So far so good,” he said at a press briefing.
“Profits from the newly-formed Global Wealth and Private Banking Division were flat, reflecting market conditions but importantly, having put a new management focus on this business, we saw an improving contribution in the second half with better insurance results, higher investment earnings and productivity improvements,” Mr Smith said.
“We will be updating investors on the direction of this business next month,” he said.
Mr Smith also said he sees opportunity to expand the business outside of Australia.
“Although we run the business on a global line, I think the opportunities are still very significant here in Australia and I also think that Asia-Pacific is going to provide a huge opportunity. But I want to get the Australian business right first and then move it to Asia,” Mr Smith said.
“We could possibly look at strategic alliances, a different model or structure, or we may look to acquire something. There are multiple options available to us,” he said.
For the 2012 financial year, ANZ group posted a statutory profit after tax of $5.7 billion and an underlying profit of $6.0 billion, both up 6 per cent from the previous year.
