Replies to post #180934 on Tornado Alley (PROG)

[fuagf]

[Australian] ANZ freezes pay of top executives, despite profit jump

by: Stephen McMahon
From: Herald Sun
August 17, 2012 12:06PM


Pay freeze: ANZ CEO Mike Smith.

TOP executives at ANZ will have their salaries frozen for a second consecutive year, despite the bank reporting a lift in market share that pushed underlying profit to $4.5 billion for the nine months to June 30.

Increased market share in key commercial and residential mortgages and deposits pushed the unaudited statutory profit after tax to $4.4 billion - up 10.3 per cent.

But as part of the bank's cost-cutting exercise, ANZ chief executive Mike Smith said top executives salaries will be frozen in 2013.

"This will demonstrate that constraining costs is everybody's business,'' he said.

Despite the challenging economic conditions, ANZ's third-quarter trading update showed costs were down, bad debts lower while also picking up market share in deposits, mortgages and business lending.
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Mr Smith said the Australian economy is "resilient' and the profit margins in the bank's Australian business had recovered slightly in the last three months, but the lending boom pre-GFC won't be seen again.

"While the credit environment reflects the pressures in the broader economy, there have been no developments which would lead us to alter our provision outlook,'' Mr Smith said.

There was no update today but ANZ reported a net interest margin, a measure of the profit it makes on loans, of 270 basis points at its half year results.

Mr Smith said the changing global economic outlook meant the bank's super regional strategy to expand its footprint in Asia - which began in 2007 - put ANZ in the "right place at the right time with the right strategy''.

"Asia may have slowed a bit but it is still motoring at more than 7 per cent,'' he said.

ANZ's bad debts for 2012 year are expected to be similar to the provision charge incurred in fiscal 2011, he said.

http://www.heraldsun.com.au/business/anz-freezes-pay-of-top-executives-despite-profit-jump/story-fn7j19iv-1226452503895

Another small step forward, one more small recognition of financial fairness.

LOL, Smithy, sure looks a happy chappie! Good on 'im. lol