By Ben Abbott
ING Australiahas silenced critics of its funds management joint venture with ANZ, after the business posted a 50 per cent increase in net profits for the year to December 2003 on the back of a significant reduction in expenses.
The $215.4 million after tax profit followed an expense reduction of 12.5 per cent or $394.5 million, which the group says was ahead of its target when the joint venture was kicked off in May 2002.
“Since the joint venture was formed, we have held market share, substantially reduced our cost base and integrated the respective ING and ANZ operations,” ING Australia chief executive Paul Bedbrook says.
“It’s a good result in what has been a challenging operating environment. Given that investment markets and investor sentiment are recovering, we are now well positioned for future growth,” he says.
Bedbrook says improved financial management means business growth will now assist the bottom line directly, and the challenge will be to drive the efficiencies through the company.
The group says the highlights of 2003 included the launch of the ANZ OneAnswer investment platform, a reorganised sales and distribution structure to leverage major channels, and the reorganisation of the ING-owned dealer groups.
Bedbrook says ING Australia is trying to further develop a channel distribution focus for the bank network, tied dealer groups, and third party dealer groups.
