The financial services royal commission established following a series of scandals involving financial planners will be a problem for profits, according to Shayne Elliott, CEO at the ANZ Bank.
The bank today announced a 4% lift in cash profit to $3.32 billion for the half year to March but warned of intense competition and more regulation ahead.
“We expect revenue growth for the second half of 2018 to continue to be constrained by intense competition as well as the impact of increased regulation,” he said, announcing the half year results to March.
“The Royal Commission into Financial Services in Australia will also continue to have an impact on the sector.
“ANZ will learn from this inquiry and continue to take real action to restore trust within the community. We’re committed to playing our part and will continue to engage with the Commission in an open, constructive and transparent manner.”
The bank expects external legal costs for the financial services royal commission to be around $50 million.
The number of ANZ customers given poor financial advice runs into the thousands, according to evidence at the royal commission.
Elliott says the bank is taking part in the royal commission in an open and transparent way.
“But that doesn’t mean that we should just sit on our hands and wait,” he says.
“When we see things where there has been legitimate questions raised, either about us, about our actions or that we see in others, we sit down and say what shall we modify and what shall we change.
“We are doing that as we speak. I imagine there will be lots of changes that ourselves and other participants will make over the time.”
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