Wellington, Aug 31 NZPA - Jenny Fagg is to step down as chief executive of ANZ National Bank in New Zealand, and will undergo treatment for cancer.

During a leave of absence from the ANZ Group, Ms Fagg would have treatment initially in this country and then in Australia, ANZ National Bank chairman Sir Dryden Spring said.

"Jenny has done an extraordinary job as chief executive over the past two years. The decision to step down has been a difficult one, however her recovery and her family are her priorities and ours," Sir Dryden said today.

"Jenny is much loved in New Zealand and in the wider ANZ Group, and the board and all of our staff wish her a speedy recovery."

Deputy chief executive Steven Fyfe will assume the role of acting chief executive effective from Thursday.