Business Description:
ANZ Banking Group Ltd (ANZ) is a major Australian-based bank with retail and business banking in Australia, NZ and the Asia Pacific. Australian operations comprise most of ANZ's business, offering commercial & retail banking & funds management. ANZ is the largest bank in New Zealand with the National Bank of New Zealand. Expansion into Asia has secured ANZ a presence in 14 countries.

Strategy Analysis:
ANZ´s 'super-regional´ strategy launched by new CEO Mike Smith in 2007 targets an increasing proportion of earnings from Asia, the Pacific, Europe and America (APEA) at the expense of traditional markets in Australia and New Zealand. ANZ aims to grow in APEA by i) capturing banking business associated with trade and investment flows between the various countries and ii) cross-selling fee-based services to institutional banking clients. The proportion of earnings sourced from APEA is steadily increasing from 12% in FY07. The initial target of 20% by FY12 has been upgraded to between 25-30% by FY17. With this strategy, unique among Australian banks, ANZ aims to differentiate itself from peers and provide superior earnings growth. The plan for offshore is intended to make up for a subdued outlook for banking growth in Australia and New Zealand. To maintain earnings growth in Australia despite contracting business credit and a bruising price war in home lending ANZ aims to increase cross-sell of wealth management. This follows the acquisition of ING´s 51% interest in the ING-branded joint venture in 2009. The bank also expects to grow faster in commercial lending than retail. ANZ Banking Group reported NPAT up 19% to $5.36bn for the year ended 30 September 2011. Underlying profit increased 12% with income up 7% despite a 31% decline in second half Institutional Global Markets income. Profit before provisions excluding Global Markets increased 8%. Revenues from ordinary activities were $16.93bn, up 8% from last year. Loans and advances increased 8% and customer deposits grew 16%. Diluted EPS was 198.8 cents compared to 174.6 cents last year. Net operating cash flow was $18.80bn compared to $3.05bn last year. The final dividend declared was 76 cents, taking the full year dividend to 140 cents compared with 126 cents last year.