Category: Banking and Finance

Source: ANZ statements

Consumer confidence rose 1.2pts last week. The four-week moving average declined 0.1pts.

‘Weekly inflation expectations’ was unchanged at 4.9%, and the four-week moving average was unchanged at 5.0%.

‘Current financial conditions’ rose 3.1pts. ‘Future financial conditions’ jumped 4.4pts rising above the neutral 100 level to its highest since January 2023.

‘Short term economic confidence’ (about the economic outlook over the next 12 months) was practically unchanged with a 0.1pt increase.

‘Medium term economic confidence’ (about the economic outlook over the next five years) was down 1.4pts.

The ‘time to buy a major household item’ subindex softened 0.3pts.

Source: ANZ statements

The bespoke solution, with a minimum AUD$50m investment, provides clients access to an individual bond mandate managed directly by ANZ’s Chief Investment Officer, Lakshman Anantakrishnan.

Unlike a traditional portfolio, the assets are held in an entity name rather than a fund structure and can be tailored to the individual needs of each client, with an initial focus on AUD denominated bonds from global and domestic issuers.

The agreement with IAM follows the appointment of Mr. Anantakrishnan to ANZ’s 15-person CIO in late 2021, and the bolstering of a specialist family office function within the bank.

In previous roles, Anantakrishnan managed institutional bond portfolios and ran a similar solution for close to a decade while Head of Portfolio Management at Credit Suisse. His experience an important factor in ANZ Private offering the solution to clients.

ANZ Private General Manager, James Dunlop said: “It was critical we had someone with Lakshman’s background running bond portfolios, a rarity in the private wealth market.”

“We’ve seen strong investment from clients already and we expect this demand to continue given the current yields on offer and relative security provided by the asset class,” Mr Dunlop said.

The offering comes as clients continue to ask for new opportunities amidst the higher rate environment and ahead of a potential easing cycle commencing later this year.

Commenting on the offering, Mr Anantakrishnan said: “With the equity risk premium under pressure, the yield available on high quality bonds is an attractive proposition and the offering allows us to tailor individual portfolios that are unique to the needs of each client.”

ANZ Private utilises the IAM platform to build portfolios and trade bonds held with sub-custodian JPMorgan.

IAM Chief Executive Officer, Jon Lechte said: “With bonds offering the best yields in decades, we have witnessed a shift in the asset allocation preferences of high-net-worth investors seeking to diversify away from equities.”

“There has been a significant expansion in the investment appetite for high quality, investment grade bonds and we are pleased to be working with ANZ to provide access to this in a portfolio solution for their clients,” he said.

Source: ANZ statements

The Community Foundation grants are designed to offer direct and tangible benefit to projects aimed at advancing financial wellbeing, housing, environmental sustainability and additional initiatives that help Australian communities to thrive.

Funding for the grants come from the donations of ANZ and its staff and in 2023, ANZ provided grants to 20 charitable organisations totalling $440,000 – the highest number of grants and funds distributed since the Community Foundation was established in 1988.

This year, grants will be given to organisations which help their communities in the following areas:

• Financial wellbeing particularly for under-represented and disadvantaged people in the community, including initiatives that improve economic participation; build financial literacy and vocational skills; and provide access to meaningful work.

• Environmental sustainability, through initiatives that restore and conserve the natural environment, or which contribute to water stewardship, lower carbon emissions and waste minimisation.

• Housing access, through initiatives and programs that support those who are experiencing or are at risk of homelessness, or that provide support for people living with disability.

• Other community projects that assist local communities to thrive.

Chair of the ANZ Community Foundation, Christine Linden said: “The ANZ Community Foundation continues to forge partnerships with inspiring community organisations, whose dedication and tireless efforts resonate deeply with our core values.”

“Last year marked a significant milestone, as were able to increase both the number of grants awarded and the total funds distributed. We look forward to helping more charities who are focused on empowering communities, while making a lasting difference in the lives of many,” she said.

The Community Foundation is funded by ANZ and its employees, with every dollar contributed through the Workplace Giving program matched by the bank with an additional two dollars.

Applications are open from 8 March until 5pm AEST on 5 April 2024.

To find out more or to make an application please visit Equity Trustees.

Source: ANZ statements

Moody’s has reaffirmed ANZBGL’s ‘Stable’ outlook.

The upgrade of ANZBGL’s ratings resulted from the application of Moody’s Advanced Loss Given Failure analysis to certain Australian banks, including ANZBGL, following the publication of Moody’s updated banks methodology on 5 March 2024.

For a list of all of the ratings actions on ANZBGL, refer to Moody’s press release published today titled “Rating Action: Moody’s takes rating actions on 11 Australian banks following Banks methodology update”

Source: ANZ statements

The sale will reduce ANZ’s shareholding in AmBank from 21.7% to 5.2% and is in line with ANZ’s strategy of simplifying the Bank.

Following the sale, ANZ will continue to have one nominated director on the AmBank Board.

The sale proceeds will increase ANZ’s CET1 ratio by approximately 16bps[1] and are not expected to have a material impact on profit. Settlement is anticipated to occur on 8 March 2024.

ANZ’s capital management considerations will include the capital release from this sale, subject to regulatory approvals.

Source: ANZ statements

“ANZ-Roy Morgan Australian Consumer Confidence fell to its lowest level this year so far last week,” ANZ Senior Economist Adelaide Timbrell said.

“Weak retail sales results may have dampened optimism about the future of the economy, while the monthly consumer price index indicator, which came in lower than expected at 3.4 per cent year on year, may have influenced the moderation in inflation expectations.

“Inflation expectations fell back to their equal-lowest result since early February 2022. This has occurred three times, once in September 2023 and twice in February 2024.

“Confidence among those paying off their homes is still trending up, but renter and outright owner confidence is down.”

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Source: ANZ statements

ANZ Economist, Madeline Dunk said: “ANZ-Indeed Job Ads resumed its downward trend in February, falling 2.8% m/m. This follows a softer than expected labour force survey in January, where hours worked fell 2.5% m/m, employment grew by just 500 and the unemployment rate rose to 4.1%. The downward movement in Job Ads suggests there is scope for the unemployment rate to rise further, as do recent changes in labour market flows. That said, we think most of the near-term adjustment in the labour market will be via a fall in hours worked rather than employment.”

Indeed Senior Economist, Callam Pickering said: “In February, the decline in ANZ-Indeed Job Ads was concentrated in Victoria, South Australia and Western Australia, while New South Wales fell modestly. That said, Victoria and New South Wales account for more than three-quarters of the overall decline in Job Ads over the past year. The tech sector remains the biggest source of Job Ad declines over the past year, along with food preparation and personal care. The best performers have been in education and healthcare, particularly for doctors and nurses. Overall, Job Ads in 92% of occupational groups declined over the past year.”

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Source: ANZ statements

ANZ Plus Add-Ons include the new Money Map and Money In & Out. Money Map is an interactive map that allows customers to track the geography of their eligible in-person purchases made with their ANZ Plus Visa debit card or digital wallet. Money In & Out provides customers a view of the money coming in and out of their account over a selected period, be it weeks, months or years.

ANZ Plus Add-Ons will also feature third-party integrations, with Qantas Frequent Flyer announced as the first partner Add-On. From today, ANZ Plus customers on iOS will be able to securely access their Qantas Frequent Flyer account in-app, view their points balance, discover new ways to earn Qantas Points and link their ANZ Plus Visa debit card to shop Card Offers via the Qantas Frequent Flyer Add-On. (Android to follow).

Group Executive Australia Retail, Maile Carnegie, said Add-Ons offer ANZ Plus users a customisable banking experience. “We understand our customers are increasingly looking for a personalised and more convenient digital banking experience.

With Add-Ons, our customers can integrate tools and insights so they’re available at a glance or connect with features from our partners.”

“The partnership and integration of the Qantas Frequent Flyer program showcases the flexible nature of the ANZ Plus retail banking platform, and we plan to expand our Add-Ons offering to customers over time,” Ms Carnegie said.

For more information on ANZ Plus visit anz.com/plus/add-ons