The future of ANZ Custodian Services was assured by a bank review which took place at the same time as Westpac’s sub-custody business was sold to HSBC last year, division head Mandy Rashleigh has revealed.
“;The assets under custody were $85 billion when I took over [in late 2005], they are $130 billion today, and we’re consistently meeting the bank’s revenue growth targets which are 8-9 per cent a year,”; she said. Speculation that ANZ’s custody business would go the way of Westpac’s was founded on the incorrect assumption that the book was dominated by low-margin sub-custody work, according to Rashleigh. “;Securities lending and equity financing income make up 30 per cent of our revenue, and the bank has a 45 per cent Australian market share for cash clearing,”; she said, adding that expanding the master custody business (whose main clients are currently Fiducian and ANZ’s staff super fund) was a “;priority”;. ANZ won over one former Westpac client following the HSBC sale announcement, signing UK bank Abbey National to a mandate combining sub-custody and Australasian cash clearing.
Insignia Financial has shifted to outsource administration of its $180 billion superannuation assets, inking a deal with SS&C and reassigning 1300 workers to the service provider during the process. The decision stands in stark contrast to peers such as Aware Super, which recently internalised member services, but CEO Scott Hartley said that option is a “costly exercise”.
Darcy SongDecember 10, 2024
