Our Super Regional Strategy
Comes to Life
Indonesia is one of ANZ’s priority markets as we pursue our growth strategy.
Our aspiration is to be a ‘top four’ 1 bank, and we are well on the way to achieving that goal. Two years ago, ANZ had no significant retail banking presence in Indonesia. Today, we are one of the largest foreign banks with 28 branches across 11 cities and almost 1,000 full-time ANZ employees.
We have significantly built our institutional and corporate banking business, supporting the onshore needs of clients as well as connecting them into Singapore and the broader Asia Pacific region including Australia and New Zealand.
Our growing customer base includes a number of major corporations specialising in the energy sector, and we continue to bank major multi-nationals and their Indonesian subsidiaries.
We have built strong liquidity over a short period of time, developed a substantial markets business and leveraged our expertise in cash and trade, and foreign exchange and rates, including commodities derivatives.
This year we completed the integration of the Royal Bank of Scotland (RBS) business into ANZ in Indonesia and re-branded our entire branch network, rapidly building significant brand recognition.2
We continue to strengthen our retail and wealth products and services for affluent and emerging affluent customers, and we have established a Private Bank.
ANZ is contributing to Indonesia’s economic growth agenda and, as our business grows, so does our support for the Indonesian community. This year, more than 2,000 staff (including staff in our partnerships) took part in the ANZ-HOPE Indonesia Walkathon to improve access to education and health services for underprivileged children.
1. by revenue 2. 19% unassisted, 91% prompted recall
Business Profile
The Asia Pacific, Europe and America (APEA) business includes 14 Asian markets and 12 countries in the Pacific as well as Europe, America and the Middle East.
Our strategy is focused on building ANZ’s businesses in priority markets including Greater China (China, Taiwan and Hong Kong), Greater Mekong (Vietnam, Cambodia, Laos), Indonesia, Malaysia and India. We also continue to develop our business in the Pacific, where we have operated for more than 130 years.
Combined with strong banking hubs in Singapore and Hong Kong, and our institutional network markets across Asia, the Middle East, Europe and America, ANZ delivers connectivity for customers across the Asia Pacific region including Australia and New Zealand.
Business Highlights
- While underlying net profit# grew 21% in US dollar terms; a much stronger AUD/USD exchange rate saw profit slightly down in Australian dollar terms. The key contributers to profit were the Institutional business and our partnerships with momentum building across Retail banking, Wealth Management and the Private Bank.
- Grew customer deposits and invested in building ANZ’s Retail Banking and Wealth Management network and products.
- Launched ANZ Signature Priority Banking for affluent retail clients.
- Completed the acquisition of selected Royal Bank of Scotland businesses in six key markets, providing 49 branches, as well as 1.6 million customers, US$6.5 billion in customer deposits and more than 4,000 staff.
- Secured key licences to underpin ongoing growth, including becoming the first Australian bank to be locally incorporated in China, receiving approval for a banking licence in India and obtaining a Qualifying Full Bank licence in Singapore.
- Provided banking services to people in remote areas through our rural banking service in the Pacific and WING in Cambodia.
- Opened the Chongqing Liangping ANZ Rural Bank in Western China and supported training for 2,000 pomelo farmers covering the latest agricultural and marketing techniques to help improve the sustainability of this important local industry.
- Invested $1.5 million in our communities through donations, volunteering and in-kind support.
Performance Tables
| Financial performance# ($m) | 2010 | 2009 | Movt% |
|---|---|---|---|
| Operating income | 2,020 | 1,967 | 3% |
| Operating expenses | (1,094) | (852) | 28% |
| Profit before credit impairment and income tax | 926 | 1,115 | -17% |
| Provision for credit impairment | (154) | (276) | -44% |
| Profit before income tax | 772 | 839 | -8% |
| Income tax expenses and non-controlling interests | (83) | (140) | -40% |
| Profit after tax | 689 | 699 | -1% |
| Total assets | 57,162 | 50,400 | 13% |
| % Contribution to group earnings | 14% | 19% | -5% |
| Non-Financial performance | 2010 | 2009 | Movt |
|---|---|---|---|
| Total Employees1 (FTE) | 13,542 | 8,555 | ↑ |
| Employee Engagement1 (%) | 66 | –2 | – |
| Total Women in Management3 (%) | 42.9 | 35.41 | ↑ |
| Volunteering Hours1 | 33,542 | 20,923 | ↑ |
| Community Investment (A$m) | 1.5 | 1.5 | steady |
| GHG Emissions (tonnes CO2-e) | N/A4 | – | – |
| Paper (tonnes per FTE) | N/A4 | – | – |