ANZ trying to close the door on ‘challenging’ year
“They are looking at our attestation process and regards to a number of these issues. It has been a very open process. We have been very happy to participate in it.”
Not that the bank has really had any choice in the matter. But it will allow the ANZ to draw a line in the sand and move on.
Watson says it is looking forward to any recommendations that will come from it.
“. . . and we will be very happy to implement them.”
Who will be ANZ’s new CEO?
The other piece of the puzzle for the bank is naming a new chief executive.
It has said it will make an announcement by the end of the year on this and Watson confirmed it was still on track to do this.
ANZ Group’s annual meeting on December 17 could be a prime opportunity. Watson said it was the board’s call to make a decision on who would be the new chief but she has put her hand up for the job.
“I have applied and yes I am keen. I am very energised about coming to work to oversee two million customers and to look after their financial wellbeing and 8000 staff. I am absolutely keen.”
Watson is well-liked within the bank and had the backing of ANZ New Zealand chairman Sir John Key when he announced Hisco’s departure.
But counting against her is the fact that she was on the board of Arawata Assets, the ANZ subsidiary which sold Hisco’s wife, Deb Walsh, the St Heliers property.
More capital
In amongst the section 95 review and the new chief executive announcement, the Reserve Bank is also expected to finalise its view on increased capital requirements for the whole banking sector. The banking industry has pushed back strongly against the proposals, which are designed to strengthen the industry in the face of a potential financial crisis.
Reserve Bank governor Adrian Orr has promised to listen to feedback.
Asked if she expected any softening of the proposals, Watson said she could not foreshadow the announcement.
“I think one thing we can be certain of is that banks will be required to hold more capital.”
In preparation, ANZ New Zealand has paid around only 20 per cent of its earnings in the dividend to its parent this year rather than the usual 80 per cent. That still equated to $375 million.
“That is partly to meet some additional capital requirements we have during the year but partly just prudently setting ourselves up for the situation where we feel there will be more capital we need to hold.”
Watson said more capital was the “almost guaranteed” outcome of the review.
“It’s just a matter of how much and what it looks like.”
The most important thing is we are learning from them and own up to mistakes when we make them and move on. Antonia Watson, acting ANZ New Zealand chief executive