The ANZ Bank wants to create the best connected, most respected bank across the Asia Pacific region.
And Asia as a region is increasingly more important as a growth generator.
Revenue from Asia has consistently grown at double digit rates with the cumulative annual growth rate over the last five years at 19%.
The bank today posted a better than forecast 5% rise in half year cash profit to $3.676 billion on the back of a 7% increase in operating income to $10.23 billion.
The bank’s strategy, which it calls Super Regional, is made up of three elements: strong domestic businesses in Australia and New Zealand; profitable Asian growth; and an enterprise wide approach to operations and technology.
The bank sees global macro conditions as challenging with low levels of corporate lending demand, excess liquidity and depressed commodity prices.
“Growth in the Asia Pacific region is, however, still expected to be more robust than other regions,” the bank said when announcing its first half results.
Cash profit for APEA (Asia Pacific, Europe and America) grew by 39% to $743 million from the September half year.
Revenue from APEA at 20% is now bigger than that from New Zealand (18%), as this chart shows:
ANZ aims to have 25% to 30% of revenue come from outside Australia and New Zealand by the end of the 2017 financial year.
The focus of Asia expansion is mainly through institutional banking which also supports Australian and New Zealand customers doing business in the region.