Jonathan Mott's questions to ANZGY leadership • Q4 2023
Question
Asked about the outlook for the institutional business margin, questioning if it was peaking given the changing interest rate cycle and yield curve shape. He also inquired about the rollout timeline for ANZ Plus mortgages and whether it would become the default platform for all new mortgages.
Answer
Executives acknowledged that a flattening yield curve could be a headwind for institutional margins but noted other supportive factors, such as a mix shift to lower-cost operational balances and strong lending margins. They do not expect a significant retracement. For ANZ Plus mortgages, they confirmed it is live but for a narrow, eligible customer group. The plan is to expand eligibility over the next 12 months to cover ~10% of the market, with a broker offering also in development. It will eventually become the predominant channel, but not in the next year or two.