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ANZ Bank New Zealand

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ANZ Bank New Zealand Limited (or simply ANZ) is a New Zealand banking and financial services company, which operates as a subsidiary of Australia and New Zealand Banking Group Limited of Australia. ANZ is one of New Zealand's big four banks, and is the largest bank in New Zealand with approximately 30% of market share as of March 2021.[5]

ANZ Bank New Zealand Limited
Company typeSubsidiary
IndustryBanking
Financial services
Founded26 September 2012; 12 years ago (2012-09-26)
HeadquartersAuckland, New Zealand
Key people
Scott St John (Chairman)[1]
Antonia Watson (CEO)[2]
ProductsTransaction accounts, insurance, stock brokerage, investment banking, asset-based lending, consumer finance
Increase NZ$4.19 billion (2021)[3]
Increase NZ$1.94 billion (2021)[3]
Total assetsIncrease NZ$184.77 billion (2021)[3]
Total equityIncrease NZ$16.89 billion (2021)[3]
Number of employees
9,000
ParentAustralia and New Zealand Banking Group
RatingAA− (S&P)[4]
Websitewww.anz.co.nz

Australia and New Zealand Banking Group bought the National Bank of New Zealand from Lloyds Bank in 2003.[6] The banks operated as separate brands until 2012, when they were unified under the ANZ brand.[6] The company was renamed ANZ Bank New Zealand in 2012, following the withdrawal of the National Bank brand. ANZ provides a number of financial services, including banking services, asset finance, investments and payment services.[6]

History

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19th century

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In 1840, Union Bank of Australia (UBA), a British bank with head office in London, agreed with the New Zealand Company to accompany settlers to New Zealand to provide them with banking services. UBA opened a branch in Petone, across the harbour from Wellington, where it transferred the branch shortly thereafter. Between 1840 and 1847 the Union Bank issued its own bank notes for circulation in New Zealand. These were initially issued under British law until 1844 when the New Zealand Governor signed an ordinance allowing the Bank to issue bank notes but required that these be a minimum of 1 pound and redeemable at demand for gold or silver.[7]

In 1848, The Governor withdrew Union Bank's right to issue bank notes and transferred these rights to the Colonial Bank of Issue (CBI). UBA notes in circulation were withdrawn and replaced with CBI bank notes. UBA objected, and every day it took whatever CBI notes it had received that day to the CBI and demanded redemption in gold; when UBA's customers wanted to withdraw money, the bank paid them in gold rather than CBI notes. This policy, when combined with previous confusion related to the issue of NZ Government debt, and support from the local commercial community, resulted in the CBI ultimately being shut down. The same year, UBA opened a branch in Auckland, and a small number of branches elsewhere in the country followed. The following year, UBC resumed issuing bank notes in New Zealand under an act of the New Zealand Parliament. (The Paper Currency Act 1856). In 1864, Bank of Australasia, another London-based bank, opened branches in Auckland, Dunedin and Christchurch.

20th century

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In 1951, UBA and the Bank of Australasia merged to become the Australia and New Zealand Bank. In 1968, ANZ Bank joined Databank Systems Limited consortium to provide joint data processing services. Two years later, ANZ Bank merged with a third London-based bank, the English, Scottish and Australian Bank, to form ANZ Banking Group. In 1976, ANZ moved its corporate headquarters to Melbourne, Australia. In 1979, An Act of Parliament permitted ANZ to incorporate its branches in New Zealand as ANZ Banking Group (New Zealand) Ltd. ANZ sold 25% of the shares to the public. In 1983, ANZ opened its New Zealand head office in Wellington.[8] In 1989, ANZ bought PostBank (the Post Office Savings Bank) from the New Zealand government in a privatization. Two years earlier, the Government had separated the Post Office's banking business into a separate entity to prepare it for sale. In 1999, ANZ launched internet banking.[9]

21st century

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In 2002, ING and ANZ formed a joint venture under the ING brand[10] The following year, ANZ bought National Bank of New Zealand from Lloyds TSB.[11] In 2008, ANZ launched a mobile application.[9] The same year, ANZ announced around 400 jobs were to be moved to Bangalore, India.

In 2009, ANZ Group CEO Mike Smith announced the Group's "super regional strategy", saying the Bank aims to not be "Kiwi" or "Australian" but a global bank. In September 2010, ANZ New Zealand became the sole owner of ING New Zealand Limited, which formed part of ING; ING provided investment advice for the investment and insurance products sold by ANZ and The National Bank. ING New Zealand Limited changed its name to OnePath Limited in November 2010.[12] The same year, David Hisco replaces outgoing Jenny Fagg as CEO ANZ New Zealand.[13] On 26 September 2012, ANZ National Bank CEO David Hisco announced that the National Bank would re-brand as "ANZ" by the end of October. The name of the company would change to "ANZ Bank New Zealand Limited".[14] The technology of the two banks was brought together from 29 October 2012,[15] with customers being able to use branches branded ANZ or the National Bank from the same date.[16] Branches branded the National Bank would change to the ANZ branding before the bank's trademark license expired in 2014.[17] In May 2019, the Reserve Bank stripped ANZ of its accreditation to set and manage its capital reserves over persistent failures since 2014.[18][19] In 2013, Onepath rebranded as ANZ Investments. In 2014, ANZ India got approval from Reserve Bank of India to open two branches in India. [20] In 2015, ANZ announced ANZ ETFS joint venture with ETF Securities to offer 6 ETFs on ASX.[21] In 2017, ANZ announced it would sell its online sharebroking service, Direct Broking, to investment bank, First NZ Capital (FNZC), for an undisclosed sum.[22] The sale was completed in December 2018.[23] In 2019, Antonia Watson replaced David Hisco as CEO of ANZ NZ.[24]

In 2020, ANZ sold UDC Finance for $794 million to Shinsei Bank.[25]

Organisational structure

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ANZ Centre in Auckland

ANZ NZ is wholly owned by Australia and New Zealand Banking Group Limited of Australia via two intermediates; ANZ Holdings (New Zealand) Limited and Pty Funds Limited (incorporated in Australia).[26] The major shareholders of Australia and New Zealand Banking Group are BlackRock Inc, The Vanguard Group and Norges Bank Investment Management.[27]

Subsidiaries

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ANZ NZ has previously owned the Direct Broking brand and UDC Finance. In December 2018, Direct Broking was sold to Jarden Securities Limited, however ANZ NZ maintains a strategic alliance with the brand. UDC Finance was sold to Shinsei Bank in September 2020 for NZ$794 million.[25] As of September 2020, ANZ's subsidiaries are:

  • ANZ Investment Services (New Zealand) Ltd
  • ANZ New Zealand Investments Ltd
  • ANZ New Zealand Investments Nominees Ltd
  • ANZ New Zealand (Int'l) Ltd
  • ANZ Custodial Services New Zealand Ltd
  • ANZ New Zealand Securities Ltd
  • ANZ National Staff Superannuation Ltd
  • Arawata Assets Ltd
  • ANZ Wealth New Zealand Ltd
  • Karapiro Investments Ltd
  • Arawata Finance Ltd
  • Endeavour Finance Ltd
  • Oneanswer Nominees Ltd

Shareholdings

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  • Payments NZ Ltd
  • Precinct Properties New Zealand Ltd
  • Freightways Ltd
  • Investment Link (New Zealand) Ltd
  • Auckland International Airport Ltd

Operations

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Personal banking

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Former ANZ branch on Lambton Quay, Wellington

As a part of ANZ's personal banking services, the bank offers a number of different bank accounts, personal loans, home loans, a wealth management service, insurance and investment services.

Investment

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ANZ Investments, is ANZ's subsidiary (previously ING) that manages investments. Currently it is the largest fund manager in NZ with approximately 745,000 customers. It is one of the nine Kiwisaver scheme managers appointed by the New Zealand Government in 2014.[28]

Insurance

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ANZ offers a number of insurance products through partnerships with different insurance companies including life and living insurance (Cigna Insurance), house insurance (Vero), contents insurance (Vero), car insurance (Vero) and travel insurance (Allianz Australia). The bank used to offer credit card repayment insurance, however since 2020, it no longer provides new policies .[29]

Wealth management

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ANZ has a wealth management service called private bank. The service provides investment management services, lending services (for personal, investment and commercial property loans), foreign currency accounts and services for foreign investors.[30]

Advertising and sponsorship

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ANZ NZ sponsors a number of sporting entities and charities including New Zealand Cricket, Netball New Zealand, Paralympics New Zealand, the New Zealand Olympic Committee and the New Zealand Cancer Society.[31] As of 2020, ANZ NZ donates NZ$15 million annually.[32]

In 2017, ANZ spent $25 million on advertising annually, higher than any other bank in New Zealand.[33]

2016 Olympic Games

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For the 2016 Olympic Games, the New Zealand Olympic Committee and ANZ NZ developed a cross platform mobile app to cover the game. During this advertising campaign, which featured heavy ANZ branding, the company experienced a 2 basis point increase in brand consideration.[34]

COVID-19 pandemic

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In response to the COVID-19 pandemic, ANZ NZ donated $2 million to the Women’s Refuge, Age Concern New Zealand, the Salvation Army, Red Cross and local charities in the Pacific, in addition to a $1 million grant to cricket and netball.[32]

Controversies

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Hisco personal expenses

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An internal review, by ANZ's integrity unit, found that former CEO David Hisco was charging chauffeur driven cars and wine storage as expenses without authorisation. The report also found that the CEO "took actions that reduced the likelihood of the personal expenses being detected, and did not report the benefit associated with the expenses".[35]

Hisco family house purchase

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In 2011, ANZ purchased a property in Auckland for $7.5 million and rented it to its then-CEO David Hisco free of charge. In 2017, the property was sold to Hisco's wife for $6.9 million when the property's capital value was $10.7 million according to quotable value data. While a Deloitte review cleared ANZ of wrongdoing, the Financial Markets Authority determined that the sale should have been disclosed in ANZ's financial statements.[35][36]

RBNZ censuring

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In May 2019, the Reserve Bank revoked ANZ's accreditation to model its own capital requirements due to "persistent failure in its control and attenuation process". Consequently ANZ is required to use a standardised model and to increase its minimum capital held by approximately 60% to $760 million.[18] A Deloitte review found that "a historically complacent approach, the absence of a comprehensive compliance plan, diffused accountability and inadequate assurance processes, all contributed to the operational risk capital breach not being identified for more than five years".[37] Although the RBNZ placed the responsibility on the directors, ANZ Chairman Sir John Key, maintains that the mistake was made by a junior employee.[35]

Credit card repayment insurance

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The Financial Markets Authority (FMA) accused ANZ NZ of issuing duplicate credit card repayment insurance policies to customers and failing to cancel policies for ineligible customers. The 390 customers with duplicate policies were still charged for the policies even though they provided no benefit.[38] ANZ NZ acknowledged the bank took too long to report the issue to the FMA and attributed the issue to human error and systems issues. The bank has since issued an apology and compensation of NZD $440,000 to affected customers, however the bank still faces High Court proceedings from the FMA.[38][39]

Criticism

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ANZ has often been a finalist for the Roger Awards, which recognise "The Worst Transnational Corporation[s] operating in New Zealand" and are run by CAFCA and GATT Watchdog.[40] Reports released by CAFCA criticised ANZ NZ for:

  • The highest gross interest margin in 2009 (in the aftermath of the global financial crisis) out of the largest four banks operating in NZ (ANZ, Westpac, BNZ and ASB Bank). ANZ had a gross interest margin of 35.4% compared to Westpac (31%) and BNZ (30.3%).[citation needed]
  • A high floating mortgage rate of 6.06% in 2009 compared to Westpac (5.69%) and BNZ (5.59%).[citation needed]

See also

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References

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  1. ^ Prentice, Noel (3 July 2024). "Money in the bank: How Scott St John succeeded Sir John Key at ANZ NZ". Institute of Directors New Zealand.
  2. ^ "Q&A WITH ANTONIA WATSON – ACTING CEO, ANZ NEW ZEALAND". Craigs Investment Partners. Retrieved 15 August 2019.
  3. ^ a b c d "Registered Bank Disclosure Statement 2021" (PDF). ANZ Bank New Zealand. 2021. Retrieved 12 November 2021.
  4. ^ "ANZ Bank New Zealand Limited". Reserve Bank of New Zealand Bank Financial Strength Dashboard. Archived from the original on 6 February 2020.
  5. ^ "BOS Dashboard". bankdashboard.bankomb.org.nz. Retrieved 26 July 2021.
  6. ^ a b c "ANZ". ANZ Bank New Zealand Limited. Retrieved 7 November 2021.
  7. ^ Ken, Matthews (March 2003). "The legal history of money in New Zealand" (PDF). Reserve Bank of New Zealand Bulletin. Reserve Bank of New Zealand. Archived from the original (PDF) on 8 May 2014. Retrieved 10 July 2009.
  8. ^ "ANZ Brand". ANZ National Bank. Retrieved 10 July 2009.
  9. ^ a b "180 Years Shareholder Centre | ANZ". www.anz.com. Archived from the original on 3 November 2019. Retrieved 7 September 2020.
  10. ^ "ANZ Investments | ANZ". www.anz.co.nz. Retrieved 7 September 2020.
  11. ^ "Application by ANZ Banking Group New Zealand Limited for clearance of a proposed business acquisition" (PDF). New Zealand Commerce Commission. 13 August 2003. Archived from the original (PDF) on 14 October 2008. Retrieved 10 July 2009.
  12. ^ "ANZ rebrands its OnePath business". NBR. 12 September 2013. Retrieved 7 September 2020.
  13. ^ "Australian to head ANZ New Zealand". Business. RNZ. 13 September 2010. Retrieved 11 March 2017.
  14. ^ "National Banks to be rebranded ANZ". New Zealand Herald. 26 September 2012. Retrieved 8 October 2015. The company's legal name would become ANZ Bank New Zealand Ltd.
  15. ^ "Important changes for ANZ customers" (PDF). ANZ National Bank Limited. Archived from the original (PDF) on 17 December 2013. Retrieved 26 October 2012.
  16. ^ "ANZ New Zealand – Facebook". ANZ New Zealand. Archived from the original on 26 February 2022. Retrieved 27 October 2012.
  17. ^ Compare: Bayer, Kurt (26 September 2012). "National Banks to be rebranded ANZ". NZ Herald. Retrieved 8 October 2015. 'The black horse and green colour branding of The National Bank are licensed from British bank Lloyds TSB, and that licence expires in 2014. So it makes sense to change to ANZ [...]'.
  18. ^ a b "Reserve Bank censures ANZ". Reserve Bank of New Zealand. 17 May 2019. Retrieved 23 May 2019.
  19. ^ Pullar-Strecker, Tom; Rutherford, Hamish (17 May 2019). "Reserve Bank censures ANZ for 'persistent weakness in process'". Stuff.co.nz. Retrieved 23 May 2019.
  20. ^ "ANZ India Gets RBI Nod To Open Two Branches". Bloomberg TV India. Archived from the original on 14 July 2014.{{cite web}}: CS1 maint: unfit URL (link)
  21. ^ "ANZ to manufacture ETFs". Independent Financial Adviser. 26 May 2015.
  22. ^ McBeth, Paul (20 November 2017). "First NZ Capital to buy ANZ's Direct Broking for undisclosed sum" – via www.nzherald.co.nz.
  23. ^ "FNZC completes acquisition of ANZ Securities – FNZC".
  24. ^ "ANZ management". ANZ NZ Ltd. 2 May 2023.
  25. ^ a b "UDC Finance sale to Shinsei Bank completes". news.anz.com. Retrieved 7 September 2020.
  26. ^ ANZ Bank New Zealand (2019). ANZ New Zealand Registered Bank Disclosure Statement (PDF) (Report).
  27. ^ St, Simply Wall (8 January 2020). "How Much Of Australia and New Zealand Banking Group Limited (ASX:ANZ) Do Institutions Own?". Retrieved 8 September 2020.
  28. ^ "KiwiSaver | ANZ". www.anz.co.nz. Retrieved 7 September 2020.
  29. ^ "Insurance | ANZ". www.anz.co.nz. Retrieved 7 September 2020.
  30. ^ "About ANZ Private Bank | ANZ". www.anz.co.nz. Retrieved 7 September 2020.
  31. ^ "Sponsorship | ANZ". www.anz.co.nz. Retrieved 6 September 2020.
  32. ^ a b "ANZ NZ gives $1m to grassroots cricket and netball". news.anz.com. Retrieved 7 September 2020.
  33. ^ "Nielsen's top 30 spenders on advertising". stoppress.co.nz. 17 November 2017. Retrieved 7 September 2020.
  34. ^ "Connecting mobile Kiwis with their Olympic heroes for ANZ". Gladeye. Retrieved 6 September 2020.
  35. ^ a b c "Review finds complacency at ANZ's most senior level after year of missteps". RNZ. 12 December 2019. Retrieved 6 September 2020.
  36. ^ dann, Liam (22 August 2019). "ANZ should have disclosed sale of $6.9m Hisco mansion – FMA". NZ Herald. ISSN 1170-0777. Retrieved 6 September 2020.
  37. ^ "Review of ANZ Bank New Zealand Limited – Effectiveness of the directors' attestation and assurance framework" (PDF).
  38. ^ a b "ANZ NZ 'very sorry' as FMA takes it to court for allegedly charging some customers for credit card repayment insurance policies that offered those customers no cover". interest.co.nz. 5 June 2020. Retrieved 6 September 2020.
  39. ^ "Financial Markets Authority files charges against ANZ over credit card claims". RNZ. 5 June 2020. Retrieved 6 September 2020.
  40. ^ "CAFCA views, analyses, research – Roger Award".
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