Esanda car core turned off borrowing

Slovenly metrics on customer engagement in one core product segment may help shape any review by ANZ into the future of Esanda, its vehicle and equipment finance arm.

Martin Smith, senior analyst at East and Partners said of media and industry talk tipping a sell-off: "Definitely the timing of the sale is a surprise. It has been floated in the past."

"Car finance product engagement has been falling in the last few rounds of research. Car finance used to be near 60 per cent. It's now down to 45.6 per cent of business use car finance," Smith said.

Brokers, many operating their own finance platforms, were "making a come back in the space, " Smith said. "There are digital disruptors."

Smith pointed out that car finance was only 11 per cent of total equipment finance borrowings. Truck finance and earth moving remain key drivers of finance demand as well.

Brian Johnson, a sell-side banking analyst at CLSA, wrote in an email: "Absolutely nothing is a fundamental at the product level.  

"With system credit growth constrained to nominal GDP growth, regulatory capital intensity rising and the cost of liquidity implicit by way of the CLF the back end of the 'teenies' will see all banks globally approach their business suites pragmatically to optimise shareholder value.  

"Westpac divested AGC years ago but with the St George acquisition, and more recently the BoSI acquisition, have moved back into financing," Johnson wrote.  

"NAB wound back Custom Credit years ago.  

"Whether ANZ exits Esanda remains to be seen but over the next 5 years banks will be divesting sub-optimal shareholder value generators."