ANZ coordinates its ascent

When industry researcher SNL recently surveyed "growing loan portfolios" for Hong Kong banks, focusing on large banks, ANZ's niche business in Hong Kong failed to rate a mention. And an overview by SNL of takeovers of banks in Hong Kong since 2008 omitted any reference to the Australian bank's purchase of the Royal Bank of Scotland's Hong Kong business in late 2009.

A lack of visibility to even an informed audience for ANZ's Asian aspirations invites only one real workaround: more effort, more profit and better PR.

ANZ may have ticked off these requirements over the full year to September 2013, with the progress of its Asian regional strategy one marker of the result.

ANZ made a group profit of A$7.3 billion - an increase of 15 per cent  - over the year.

Chief executive officer Mike Smith said on Friday the 2104 profit demonstrated a "consistent execution" of the bank's super regional strategy and positioned ANZ well "in a more constrained operating environment."

"We made progress in all our key markets by creating a better bank for all our customers whether big, small, retail or corporate with the Australian operations generating well over half of its profits and remain core," Smith said.

ANZ's international and institutional banking unit, which envelops all its Asian entities, performed strongly.

"The result saw continued momentum from our international business in Asia Pacific, Europe and America," Smith said.

This group now accounts for 24 percent of group revenues. Cash profit from Asia increased 25 per cent while revenue rose ten per cent.

Revenue from Asia has grown strongly over the past five years, with a compound annual growth rate of 23 per cent.

"With the phase of high investment in Asia largely complete, we are seeing a greater share of Asia-led revenue growth translate to profit," Smith said.

 "We expect 2015 to present similar opportunities for ANZ, with a continuation of a stable and benign credit environment," he said.

ANZ has targeted for 25-30 percent of earnings to come from outside Australia and New Zealand — mainly Asia — by 2017.

Profit directly attributed to Asia over the year was A$522 million, up from $463 million in 2012.

The bank produced $35 million of this gain from its "partnerships", or minority holdings in regional banks.

Profit trends from this clutch was mixed, with most of the rise concentrated in the earnings of ANZ's Malaysian affiliate AMMB and smaller holdings.

Shanghai Rural Commercial Bank, Bank of Tianjin and Panin in Indonesia all produced negligible profit growth.