Shayne Elliott, the CEO of ANZ Group, addressed the shareholders at the Annual General Meeting (AGM) on Wednesday, December 20, 2023. He shared the highlights of the Group’s performance in the past year, as well as the challenges and opportunities ahead.

Strong results driven by people and culture

Elliott began his speech by thanking the shareholders for their trust and support, and the employees for their dedication and hard work. He said that the Group achieved strong financial and strategic results in 2023, despite the ongoing impact of the COVID-19 pandemic and the uncertain economic environment.

He attributed the success to the Group’s people and culture, which he said were the key drivers of customer satisfaction, innovation and efficiency. He praised the Group’s diverse and inclusive workforce, which he said reflected the communities they served and the customers they supported.

He also highlighted the Group’s commitment to social and environmental responsibility, citing examples of how the Group reduced its carbon footprint, supported renewable energy projects, and contributed to various causes such as mental health, education and financial inclusion.

Exciting plans to grow in Queensland and beyond

Elliott then announced some of the Group’s exciting plans to grow its customer base and market share, especially in Queensland, which he said was one of the fastest growing states in Australia. He revealed that the Group was in the process of acquiring Suncorp Bank, a leading regional bank with 1.2 million customers and over 200 branches across Queensland, New South Wales and Victoria.

He said that the acquisition would significantly increase the scale and reach of the Group’s retail and commercial banking business, and help it compete more effectively with the other major banks. He also said that the acquisition would bring benefits to the customers of both banks, as they would have access to the Group’s superior technology and customer propositions, such as ANZ Plus, a digital platform that offers personalised services and rewards.

As part of the plan to acquire Suncorp Bank, Elliott said that the Group would establish a major tech hub in Brisbane, creating 700 jobs in digital, cloud and data. He said that this would enhance the Group’s technological capabilities and innovation, as well as provide strong career pathways for Queenslanders.

He said that the acquisition was subject to regulatory approval, and that the Group was working closely with the authorities to ensure a smooth and timely completion. He expressed confidence that the acquisition would be approved, but he also said that the Group had a robust Australian growth strategy in place, even if the transaction was blocked.

Optimistic outlook amid challenging environment

Elliott then turned his attention to the economic outlook for the next year, and how the Group was prepared to face the challenges and seize the opportunities. He said that the economies in Australia and New Zealand remained remarkably robust, with low unemployment, solid wage growth, resilient household balance sheets, strong housing markets, government activity and solid business investment intentions.

However, he also acknowledged that the outlook was more challenging than before, with high interest rates and inflation, rising geopolitical risks and changing capital flows. He said that the Group’s economists expected slower economic growth in both countries in 2024, and only modest movements in interest rates and inflation.

He said that the Group’s job was to ensure that it had the strength and agility to manage any external environment, and to support its customers through challenging times. He said that the Group had a strong balance sheet and a diversified business, which gave it resilience and flexibility.

He also said that the Group had proactively contacted more than 20,000 home loan customers each month over the past 18 months, to check in and ensure the ongoing suitability of their loan arrangements. He said that these efforts were making a difference, with over 70 per cent of customers who contacted the Group in hardship back on track with their home loans within 12 months. He said that the Group expected to provide more support for its customers in the coming year, and that it stood ready and able to do so.

Priorities for the coming year

Elliott concluded his speech by outlining the Group’s priorities for the coming year, which he said built on the Group’s strong performance and ambitious plans. He said that the Group would:

• Continue to run the Group prudently, using its strength to support customers through challenging times and seek opportunity from its regional network,
• Further improve productivity, using tools like Generative AI to build further capacity for investment,
• Grow the number of customers using ANZ Plus and deepen their engagement,
• Continue to invest wisely in Commercial, Institutional and New Zealand, and
• Complete the acquisition of Suncorp Bank, delivering the benefits of its superior technology and customer propositions to their 1.2 million customers.

He said that the Group had held a steady hand, and structurally it found itself in the right place, at the right time, off the back of years of investment and diligent execution. He said that the Group was confident in its strategy and its ability to deliver value for its shareholders, customers and communities

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