Mike Smith’s Asia focus draws applause in the region

ANZ CEO Mike Smith was introduced in 2008 to the dynamic mayor of Chengdu, Ge Honglin, by Geoff Raby.

BUSINESS: ANZ chief executive Mike Smith helps open the bank's first rural branch in Chongqing, China.

ANZ chief executive Mike Smith was introduced in 2008 to the dynamic mayor of Chengdu, Ge Honglin, by the then Australian ambassador to China Geoff Raby.

Dr Ge is now chairman of Chinalco, Rio Tinto’s biggest shareholder.

Dr Raby, among a stream of Asia-based business figures to tell The Australian of Mr Smith’s skills at work in Asia, said that the mayor had to convert a ­planned dinner to a late night tea at the executive lounge of the city’s Shangrila Hotel.

“Mike and the mayor immediately hit it off,” said Dr Raby, now a leading Beijing-based consultant. “They bounced off each other’s energy.”

The mayor was disappointed that ANZ was already planning to open a branch in Chongqing, Chengdu’s rival city.

“He said to Mike he would do whatever was necessary for ANZ to do something in Chengdu. At that time, Canberra was conflicted over whether to open a consulate in Chongqing or Chengdu, although the embassy’s advice was for the latter.

“Dr Ge may have seen that clearing the way for an ANZ presence would help swing the Australian government in favour of Chengdu. By the end of the evening, Mike had agreed to open ANZ’s China back-office in Chengdu, the mayor supported ANZ’s investment, and the office opened within the year and has grown rapidly since.”

Dr Raby said that Mr Smith was “bold and courageous in his embrace of China. Although not too far ahead of some of the other major Australian banks in investing in municipal banks or opening branches, he had a big vision of where China might go and the possibilities it presented.”

He said Mr Smith’s exposure goes back to his time at HSBC, “and he brought to ANZ many of the key relationships he had formed there and which would have been difficult for an Australian banker to achieve. For example, he was a member of Chongqing’s foreign advisory board.

“As a result of those connections, ANZ invested in a Chongqing rural bank, putting ANZ ahead of other Australian and many foreign banks, Dr Raby said.”

Mr Smith announced late last week that he would step aside as ANZ chief executive in December. The bank’s chief financial officer, Shayne Elliott, will step up into the CEO’s role.

Dr Raby described how ANZ and BlueScope jointly funded the rebuilding of a primary school near Wenchuan in Sichuan province following the devastating earthquake in May 2008.

“I accompanied Mike to a joyous and emotional opening ceremony. The rebuilding effort by these two Australian firms was greatly appreciated by the local and provincial authorities and received mention in the national media. It was the height of the global financial crisis, and he was on and off his mobile making the decision to buy Royal Bank of Scotland assets in Taiwan.

“Mike’s personal involvement in not only supporting the expenditure on the Sichuan school, but attending the opening in person showed his grasp of how China works: on the basis of relationships.”

Leading Chinese TV host and business journalist Cheng Lei said: “Mike Smith exemplifies the Asia-first strategy. It is due to his passion and vision that the ANZ has one of the most extensive networks among foreign banks in China.”

She said that Mr Smith “enjoys a high profile in the Chinese business media, and is widely quoted on China financial reforms and economic development.

“This has culminated in the ANZ being the best recognised Australian bank in China.”

Indonesia Australia Business Council president Kris Sulisto said: “ANZ is the most visible face of the Australian financial services industry in Indonesia, and in the last seven years under Mike’s leadership ANZ has grown to be one of the leading international banks in Indonesia.

“ANZ has also been well recognised for helping Indonesia develop its national infrastructure by supporting major state-owned enterprises to tap into global bond markets.”

The bank, he said, had also helped the Indonesian government to mobilise domestic savings by becoming the largest distributor among all banks of the annual government domestic rupiah bond issue to retail investors.

“The transformation under Mike Smith’s leadership has been remarkable, and the fact that an Australian business is so well established in Indonesia is a great positive. We need more Australian business to engage with Indonesia, and ANZ’s remarkable success and expansion here shows what can be achieved by Australian business in the country,” Mr Sulisto said.

Melanie Brock, the chairwoman of the Australian and New Zealand Chamber of Commerce in Japan, said Mr Smith was “highly regarded in Japan for his commitment to developing a stronger presence for ANZ and Australia in the region. His business acumen, big-thinking approach and passion for people and their development are always on display.” And Jason Hayes, PwC’s Japan practice leader, described the banker as “one of the very few Australian business leaders to have had the vision and courage to build a super-regional bank of global quality in Asia.

“In doing so, Mike has paved the way for many Australian companies to learn a lot from ANZ as they continue their own journey towards the next frontier, which is Asia.”

He said that in Japan, “it has been an absolute delight to watch first hand ANZ’s presence under Mike’s leadership evolve from a relative unknown to an international player that has grabbed the respect and admiration of both Japanese megabanks and other global institutions ... a market that many other business leaders have simply failed to deliver”.

Mr Hayes said: “I think many Australian companies will look to Mike’s achievements in Japan and other parts of Asia as a benchmark that supports their own endeavours.”