Neil Mitchell engaged in a detailed conversation with Shayne Elliott, the Chief Executive of ANZ Bank, on his 3AW program. The discussion covered various topics, including the ongoing housing market boom, interest rates, and economic trends.
Elliott explained that the housing market could continue its current trajectory due to high demand and low loan servicing costs. "The actual amount of average income you need to service the loan... has never been lower," he stated. However, he acknowledged concerns about sustainability at such high levels, noting potential social and political issues if growth persists unchecked.
On interest rates, Elliott suggested they might rise eventually due to inflationary pressures. He remarked on the impact of government support and low interest rates during COVID-19: "We all underestimated the sort of overwhelming amount of support... hundreds of billions of dollars being thrown."
The dialogue also touched on small business challenges post-COVID-19. Elliott noted that many businesses do not have significant debt and are resuming payments after deferrals during the pandemic.
Mitchell raised questions about online banking trends accelerated by COVID-19 restrictions. Elliott highlighted a substantial increase in digital transactions: "Transaction volumes on our app... are 30 percent year on year." He attributed branch closures partly to declining foot traffic as more customers shift online.
Regarding workplace culture, Elliott outlined ANZ's approach to handling allegations of misconduct. He emphasized a thorough investigation process for both current and historical claims within the bank.
The interview concluded with discussions on flexible work arrangements post-pandemic and ANZ's decision not to continue financing projects like the Port of Newcastle coal operations. Elliott cited risk assessments aligned with their climate change policy as influencing factors.
Elliott expressed enthusiasm for supporting charitable efforts like Neil Mitchell's Royal Children's Hospital fundraiser, showcasing ANZ's commitment to community involvement.