ANZ snares ex-Westpac mover

He is one of the highest-ranked local bankers to defect to a rival in recent years. A career banker, he was previously a contender to take charge of Westpac.

For ANZ the move also fills a key gap. Its Australian retail banking franchise has been losing momentum to rivals since the departure earlier this year of former Australian retail boss Brian Hartzer to the troubled British lender, the Royal Bank of Scotland.

As ANZ has been busy pumping up its Asian operations, its pool of top executives with experience in the local banking market had been depleted.

But 53-year-old New Zealand-born Mr Chronican could emerge as a potential chief executive if the incumbent, Mike Smith, were to depart unexpectedly.

"Chronican brings to ANZ credibility and respect as a seasoned successful leading banker with on-the-ground experience of the operating environment before, during and after the 1992 Australian commercial property collapse," analyst Brian Johnson of CLSA said yesterday.

Mr Chronican will take charge of ANZ's biggest operating business, covering retail branches, small to mid-sized business lending and wealth management. Last year it generated nearly $1.5 billion in earnings, or nearly half of ANZ's full-year profit.

The appointment follows the announcement last week of ANZ's plans to move to full ownership of its wealth management joint venture, ING Australia, in a $1.76 billion buy-out.

A 27-year Westpac veteran, Mr Chronican most recently headed Westpac's institutional division. He stepped down in July.

Mr Chronican also held the role of chief financial officer for four years and headed Westpac's retail operations.

Mr Chronican did not have a role lined up when he retired from Westpac but the move to ANZ has surprised some Westpac insiders who did not anticipate he would join an arch rival.

Mr Chronican was one of the key players who transformed Westpac into a low-risk bank under its previous chief executive, David Morgan. In late 2007 he was passed over for the role of chief executive for the St George boss, Gail Kelly.

On his departure in July, Mr Chronican said the time was right to look for different challenges and the next stage of his career.

O ANZ has continued its push into mainland China, opening a rural bank branch in Liangping, western China.