The new head of ANZ’s institutional business says he is planning job cuts.
That’s on top of the 20 percent of ANZ’s top executives that have already been culled.
Mark Whelan, who came into the job in February, plans to reduce risky assets in the division by 16 percent,
He is looking to cut $30 billion in three years as part of a broader strategy of getting bigger returns on equity.
“We had built a model that was not right for current markets and our bank,” Whelan told Bloomberg.
“If we are going to simplify the organization, it has to start at the top and filter lower. Most of the pain has been taken at the senior level and also at the middle level as we had built it for a global bank instead of a regional bank.”
Whereas the bank’s previous Chief Executive Officer Mike Smith had set a target of doubling the profit contribution of businesses outside of Australia and New Zealand to 30 percent by 2017, things have changed since the new CEO Shayne Elliott took over.
“We are not setting a target anymore,” Whelan said. “We are downsizing there, we are seeing the need to sweat the assets more there and it’s less about revenue and more about returns. It’s counterproductive to have such a target and Shayne doesn’t like it.”