Good morning.
ANZ's CEO Shayne Elliott recently addressed the bank's 2023 half-year results, marking the first report as a Non-Operating Holding Company. Elliott highlighted a robust financial performance despite acknowledging the severe impact of Cyclone Gabrielle on communities in New Zealand. "As the largest bank in New Zealand, we are acutely aware of the important role we play," he said, emphasizing ongoing support for recovery efforts.
Elliott described this period as strategically and financially successful, noting record revenues and cash profits across all four business sectors. The bank has reshaped its operations over several years by selling off less profitable assets while expanding in targeted areas such as home ownership and business growth. This strategy has not only maintained but increased revenue and cash profit. "Reducing risk has been an important part of our strategy," Elliott stated, pointing out improvements in credit loss metrics.
A fully franked dividend of 81 cents per share was announced, reflecting confidence in ANZ's simplified operational model. Over seven years, ANZ exited more than 30 non-core businesses and made significant investments to enhance its core offerings in Australia and New Zealand.
Financial highlights include double-digit revenue growth across all sectors with particularly strong performances in Commercial, Institutional, and New Zealand divisions. Business line profits before provisions saw substantial increases ranging from 25% to 65%, while overall cash profit rose by 23%.
ANZ Plus continues to grow with $6.1 billion on deposit from over 260,000 customers. "The join experience is generating the highest NPS scores of any major Australian bank," Elliott noted about customer engagement with ANZ Plus.
In Australia Commercial, new Group Executive Clare Morgan was welcomed into a thriving division showing strong returns on equity with plans for further transformation through automation and enhanced customer propositions.
Institutional banking also delivered record results due to strategic refocusing on servicing financial institutions and processing platforms like payments and currency processing. "The result is not a one-off," said Elliott regarding institutional success.
New Zealand operations faced economic challenges intensified by Cyclone Gabrielle but maintained market leadership while preparing for potential credit losses amid signs of stress among businesses.
Elliott acknowledged recent global market turbulence reminiscent of past crises but expressed confidence in ANZ's position due to its diverse portfolio management approach focused on risk-adjusted returns.
Looking ahead, ANZ plans to integrate Suncorp Bank successfully if approved; continue investing in differentiated retail services via ANZ Plus; grow commercial banking alongside sustainable finance initiatives; maintain rigorous risk discipline; focus on productivity without compromising employee engagement or culture.
In conclusion: "We look ahead with the full support of our incredible team at ANZ," said Elliott confidently about navigating future challenges together with their dedicated workforce committed towards shaping better outcomes for people across Australia & New Zealand."