He said among the positives were higher $A dollar earnings from offshore operations but there were also negatives in items like lower capital levels in $A terms.
"When shareholders buy ANZ they get exposure to the region … but in the shorter term (the currency) introduces some fluctuations."
“When shareholders buy ANZ they get exposure to the region … but in the shorter term (the currency) introduces some fluctuations,” he said.
Elliott said the lower $A would also make some targets the bank set when the currency was nearer to parity with the US dollar harder to achieve, for example a 16 per cent return on equity target, but he added “we are still committed to those targets”.
The CFO said the bank was happy with the performance of the customer franchise and some earnings impacts were due to factors such as lower commodity prices rather than weaker business. Ultra low interest rates being set by central banks around the world also had an impact on ANZ’s – and other banks’ - revenues.
Strengths evident in the trading update were earnings from Australia and New Zealand and ongoing strong credit quality.
“That reflects the time, it is a good place for bank credit quality,” Elliott said.
We can and we are producing returns [in Asia] above our cost of capital today and we can improve from where we are now.