Chief executive Shayne Elliott said the group was simplifying its approach to wealth management, which includes the bank’s insurance, superannuation and investments products.
As a result of the changes, Ms Phillips, who led ANZ’s wealth, marketing and innovation divisions, will leave.
ANZ Bank’s wealth chief, Joyce Phillips
“The simplified approach also provides the opportunity to focus on improving returns and capital efficiency from our insurance, superannuation and investments product business given higher regulatory capital requirements,” Mr Elliott said.
The moves, foreshadowed by Street Talk, comes after ANZ appointed Google’s Australian boss, Maile Carnegie, to the newly created position of group executive for digital banking.
Reporting to Mr Elliott, Ms Carnegie will have responsibility for digital projects, innovation and “strategic relationships” with the fintech sector that is seeking to challenge the power of the big four banks.
Mr Elliott said the wealth division had achieved a “significant amount” under Ms Phillips’ watch since it was formed in 2012.
ANZ’s global wealth arm posted a net profit of $601 million during the last financial year – an 11 per cent increase from 2014. The division contributed less than 10 per cent of ANZ’s profits.
In an internal company interview, Mr Elliott said the bank wanted to “really maximise” the 10 per cent of group capital that was currently locked in the wealth division.
“It is going to be material in the terms of the impact on the wealth business but for shareholders, given that it’s only 10 per cent, it will be a good thing but it’s unlikely that it’s going to be a dramatic outcome for shareholders,” he said.
The restructure will see wealth effectively move into ANZ’s retail business. ANZ’s private bank division will report to Fred Ohlsson, group executive Australia and ANZ Financial Planning will transition to be part of the retail distribution arm.
The group’s New Zealand wealth business will fall into the expanded retail, business banking and wealth division.
Wealth in Asia will join Retail Asia, while the group’s remaining insurance, superannuation and investments activities in Australia will be rebranded Australia Wealth. Alexis George, ANZ’s managing director of insurance, will head the business and report to Mr Elliott.
Sources said the break-up of the wealth division could be seen as a precursor to a potential sale in the next 12 months.
ANZ has looked at stepping up a process of divestments. Last year, the bank sold its Esanda dealer finance unit to Macquarie Group for $8.2 billion. It is also reviewing its non-controlling interests in Asia.
ANZ shares have fallen 35 per cent in the past 12 months to $23.07, compared with the 17 per cent fall of the benchmark S&P/ASX200.