As the U.S.’s Export-Import Bank continues with halted trade financing operations, the importance of such banking activity and its impact on the global economy has taken the spotlight. But it’s not just the U.S. at center stage.
Reports late last week from Wealth Professional said the Australia and New Zealand Banking Group is shrinking its trade finance operations in Asia, a result of weaker profits and rising competition, especially in China.
[bctt tweet=”Australia and New Zealand Banking Group is shrinking its trade finance operations in Asia.”]
“We’ve taken some hard decisions around the trade business in particular, which is a really competitive business in Asia,” said incoming ANZ CEO Shayne Elliott on a media conference call.
While ANZ reported a 1 percent hike in profits, the numbers represented the slowest growth for the institution since 2008. According to reports, net loans and global banking operations saw a 1 percent decline in the six months ended Sept. 30, marking the first decline for these segments since ANZ began reporting these statistics in 2012.
“From time to time, it’s a great business, and when we have excess liquidity, we can participate,” Elliott added. “In the second half, the returns were a little too low, and we’ve deployed our capital elsewhere.”
Reports said Elliott will replace outgoing CEO Mike Smith starting Jan. 1.
Despite its decision to shrink trade financing services, ANZ will reportedly hike other corporate banking operations, like cash management and treasury management. The move stems from the bank’s successes among SMEs at home, reports noted. Elliott will reportedly look to double the profit rooted in non-Australian and New Zealand businesses by 2017.
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