ANZ cuts back on trade finance in Asia

Sydney

AUSTRALIA & New Zealand Banking Group Ltd (ANZ) has begun reducing its trade finance business in Asia to protect margins and bolster returns after the lender reported its slowest profit growth since 2008.

Net loans at its international and institutional banking businesses fell by one per cent in the six months ended Sept 30, ANZ said in a statement on Thursday. That was the first drop since such disclosures began in 2012, filings show. The unit is stepping away from "lower return financial institutions" trade finance and focusing on cash management, outgoing chief executive officer Mike Smith said in the statement.