CHIEF EXECUTIVE OFFICER'S REPORT »
In 2011 we produced solid results in each area of our business highlighting the strength of our key franchises in Australia, New Zealand and Asia Pacific.
In Australia, profit increased 4% based on good cost management and solid results in Retail and Commercial. In Wealth, profits fell reflecting difficult market conditions and increased insurance costs following the extreme weather events early in the year. Pleasingly, we have continued to increase customer satisfaction in all segments and despite increasing competition, we’ve maintained our number one ranking for customer satisfaction in Retail.
In Asia Pacific, Europe and America, we maintained momentum with US Dollar profit up 22%. We are continuing to invest in Asia to build scale and capability however, having completed the integration of the Asian business we acquired from the Royal Bank of Scotland, we are now managing expenses more tightly while still investing for growth. The benefit of this investment is showing in the franchise we are building.
In New Zealand, profit rose by 49% driven by a large fall in provisions and tight control of costs. The New Zealand economy is slowly recovering but the environment is likely to remain soft for some time. Nevertheless, we have a consistent focus on simplification and efficiency within our New Zealand business and I’m optimistic about what can be achieved.
Institutional profit increased by 7%. The business is delivering more diversified earnings by product, customer and geography, and continued growth in our client base as a result of a clear strategy to build the world's best bank for clients driven by trade and capital flows in the Asia Pacific region, particularly in resources, agribusiness and infrastructure. However, the key issue for Institutional in 2011 was the fall in Global Markets earnings as a result of the extremely volatile market conditions although this has been consistent with the performances seen at other banks both domestically and globally.
