Ed Henning's questions to ANZGY leadership • Q4 2023
Question
Asked about the trend in deposit mix shift (transaction accounts to term deposits) and its future impact on margins. Also inquired about the duration of back-book mortgage repricing pressure on lending margins. A second question focused on the components of future expense growth, specifically strategic investment and restructuring costs.
Answer
Executives noted the deposit mix shift to term deposits has been pronounced but was slowing towards the end of the half. The back-book repricing headwind is also expected to lessen as most of the book is now at contemporary pricing. On costs, they expect investment spend to be stable to slightly down, but vendor inflation remains a pressure. Restructuring costs are expected to remain at similar levels to support ongoing productivity initiatives to offset inflation.