Jablko: ANZ capital put to best use

ANZ CFO Michelle Jablko says ANZ’s full-year profit growth shows the bank is putting its capital to the better use amid its focus on home markets in Australia and New Zealand. 

" It’s about driving better returns in the businesses and we’ve done that." - Michelle Jablko, ANZ CFO

Speaking to bluenotes on video, Jablko said the core of the bank’s reshaped strategy was how it optimised its capital.

“This year we wanted more capital allocated to Australia and New Zealand – and we’ve done that,” she said. “Then it’s about driving better returns in the businesses and we’ve done that as well.”

Jablko said the shift had come at a time the bank has been generating more capital, giving ANZ greater flexibility for capital management.

“Pleasingly we’re two years ahead where we need to be based on APRA’s new requirements and that gives us lots of flexibility going forward,” she said.  

In the full year to October, ANZ posted an 18 per cent rise in cash profit to $A6.9 billion. The bank’s common equity tier one capital ratio rose to 10.6 per cent in that period.

Jablko said the bank had improved its risk-adjusted returns as a result of moves such as selling its retail-banking exposure in Asia.

“Clearly the market environment has been good as well but we’ve also made some structural changes in our business,” she said.

Jablko also touched on the bank’s continuing focus on costs and the outlook for net-interest margins. Watch the video above to find out more.

Andrew Cornell is managing editor at bluenotes