ANZ's aspirations to build its funds management revenue can occur only through its joint venture with ING Australia, the outgoing chief executive of ING Australia, Paul Bedbrook, told the
Sydney Morning Herald in one of a series interview in connection with his new job. Bedbrook is shifting to Hong Kong as regional chief executive for ING Insurance Asia Pacific.
"When both shareholders do something in wealth, as defined by the joint venture deed, they will do it together," he said.
"In retail wealth and life insurance, as we generally think of it, that's the joint venture," Bedbrook said. "They must operate together."
ING Australia owns 51 per cent of the joint venture and ANZ owns the remainder. ANZ has grumbled in the past about its relatively low weight in wealth management and may want to renegotiate the terms of its joint venture with ING, a deal struck in 2002.
ING Australia in the year to September made a net profit of $311 million. Earnings growth in the funds management division was up 20 per cent, while life risk earnings were up 35 per cent.