ANZ removes wealth management risk from bank

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27 October 2022
| By Laura Dew |
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The exit of financial planning and advice by ANZ means the firm has removed wealth management risks from the business, it said in a full-year update.

In an update for the full year to 30 September, announced to the Australian Securities Exchange, the firm noted its sale of the financial planning and advice business which serviced the affluent customer segment to Zurich Financial Services.

“As a result of the transaction, the group recognised a $62 million loss largely comprising a goodwill write-off of $40 million in other operating income, restructuring expenses of $7 million, and an income tax benefit of $9 million in the Australia Commercial division,” the bank said.

It had also completed the formal separation of its wealth business to Insignia and sold its margin lending to Bendigo & Adelaide Bank.  

As a result, the bank said the sale meant it had “removed the risks associated with wealth management for shareholders” from the business and was the first bank to do so.

Focus would now be given to home loans, digital bank ANZ Plus and the acquisition of Suncorp Bank in Queensland.

The bank would pay a final dividend of 74 cents per share.

Chief executive, Shayne Elliott, said: “The world is in a period of significant uncertainty with central banks struggling to control inflation. Geopolitical uncertainty, most notably the war in Ukraine, also continues to weigh heavily.

“There is uncertainty ahead, however we have the business in good shape to withstand volatility. We also have a highly engaged workforce with a high-performance culture and I’m confident in our ability to continue to deliver for customers and shareholders.”

Earlier this week, the firm received a $25 million penalty from the Federal Court for failing to provide certain benefits it had agreed to give to customers.

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