CEO’S MESSAGE: ANZ 2023 Annual Report

Each of our four divisions performed well to contribute to a 13 per cent year-on-year increase in cash revenue and a 14 per cent year-on-year increase in cash profit from continuing operations to $7.4 billion. These are record results.

Our long-standing commitment to our purpose, shaping a world where people and communities thrive, and our transformation to a simpler, better run bank, helped generate these steady and sustainable returns.

Over the last seven years we have significantly reshaped ANZ through the disposal of assets in lower performing, non-core or riskier segments, resulting in a unique, diversified portfolio of high performing businesses which differentiates us from our peers. This is particularly valuable in a more challenging environment and gives us more options for growth.

Our focus on long-term productivity has provided the capacity for us to increase investment to transform and re-platform all of our divisions for long-term success. This includes our Institutional technology and payments systems and our new retail platform ANZ Plus.

We have further strengthened our balance sheet and reduced overall risk. We closed the year with more capital than ever before.

We also continue to see the benefits of the disciplined execution of our strategy. We finalised our Non-Operating Holding Company structure, completed the BS11 regulatory program in New Zealand, and made a strategic investment in View Media Group. We exceeded our target of two million Cashrewards members, while ANZ Worldline Payment Solutions launched ‘Tap to Pay on iPhone’.

Divisional highlights

Today we have four core divisions: Australia Retail, Australia Commercial, New Zealand and Institutional. Each has a clear sense of purpose and a well-articulated strategy, with a funded roadmap to build contemporary, relevant customer propositions to win in the marketplace.

Australia Retail continued to invest in processing capability for Home Loans, which delivered improved service levels and consistent turnaround times contributing to high quality growth in our retail balance sheet.

Australia Commercial is our highest returning division and gross loans and advances achieved the highest level on record while deposits grew to $113 billion. Named as 2023 Small Business Bank of the Year from Canstar, this division has a strong future and we are investing at record levels to build further capability and capacity.

Institutional continued to show the benefits of its transformation, to a sustainable value-creating business built around cash management, currency and processing rather than lending alone. We are particularly pleased with the strong performance in Transaction Banking. After long-term and sustained investment, and a complete re-platforming of our technology, ANZ has extended its market leadership in Payments and Cash Management in Australia and New Zealand, with a developing presence in Asia. This business is fast growing, high-returning and capital efficient.

We facilitated the movement of $164 trillion in all payments and capital flows to, from and within the markets in which we operate, and either cleared or provided payment services to more than 90% of the world’s globally systemic banks. This enterprise business has enormous economies of scale and this year’s results are a major step forward.

The strength of our New Zealand franchise was once again evident as we maintained leading market positions in major segments including home loans, retail deposits, institutional, agriculture and funds management. Our brand consideration in New Zealand is at an all-time high and we were again named Canstar Bank of the Year for Small Business and for Agriculture. At the same time, we supported our customers following the devastation of Cyclone Gabrielle, pledging NZ$3 million to communities that were affected.

ANZ Plus

When we launched ANZ Plus, we set out to create a point of difference for ANZ in Australia that would support our customers’ financial wellbeing and respond to their rapidly evolving needs, in a way that was highly engaging, far more efficient, quick
to adapt and low cost to run.

Since then, ANZ Plus has become one of the fastest growing digital banking platforms in Australia. As of 30 September 2023, ANZ Plus had attracted more than 460,000 customers and $9.4 billion in deposits.

About 40% of ANZ Plus customers are new to ANZ, and since going live we have added more than 200 new features or enhancements. Our new ANZ Plus digital home loan is now available and being rolled out to eligible customers.

In line with our financial wellbeing ambitions, some 35% of ANZ Plus customers are actively saving towards a goal, which is the single most important action a customer can take to improve their financial wellbeing. Importantly, the advanced security measures on ANZ Plus continue to result in one of the lowest incidents of digital fraud in the industry.

Supporting our customers and communities

This year we have worked hard to support our customers and the community, and help keep them safe.

We have deployed significant resources, including 440 customer protection specialists, to help prevent more than $100 million
of customer’s money from going into the hands of cyber criminals.

We also supported financial wellbeing and literacy, with more than 87,000 people participating in our education programs, Saver Plus and Money Minded, the latter of which was delivered in 16 of our markets this year.

Through the year we supported more than 19,000 first home buyers in Australia and New Zealand, and funded and facilitated $610 million to deliver more affordable, accessible and sustainable housing to buy and rent in Australia.

Shayne Elliott is Chief Executive Officer of ANZ.