ANZ CEO Shayne Elliott has expressed concerns about the financial future of some businesses and households as Australia's third-largest bank navigates the economic challenges posed by the COVID-19 pandemic. Speaking with Elysse Morgan on ABC's The Business, Elliott highlighted the difficult decisions banks may face in determining which entities will continue to receive support.
Elliott noted that while loan-repayment holidays have been extended for six months, there is uncertainty about when tougher choices will need to be made. "Well, I don't know is the honest answer to that," he said, referring to when banks might have to decide which businesses and households can survive financially. He emphasized that much depends on how the health crisis evolves and its impact on the economy.
The banking sector has offered repayment deferrals for at least six months, providing a temporary buffer for struggling clients. However, Elliott acknowledged that this period might not be sufficient for all: "Probably. It's probably a six-month one that we don't have to make some of those terrible decisions."
Elliott identified certain sectors already weakened by events such as bushfires as particularly vulnerable. Despite this, he assured that ANZ does not currently hold a significant number of distressed business accounts: "So we don't have a book of bad businesses as a general rule."
Regarding households, Elliott addressed concerns about those with multiple investment properties facing financial strain due to rental income disruptions. He clarified ANZ's stance on payment holidays: "For ANZ, it applies to both [owner occupiers and investors]."
The discussion also touched upon residential rentals and potential evictions during the crisis. Elliott suggested landlords would act sensibly: "I think landlords are sensible...most people are decent people who will understand that tenants are doing it tough."
Finally, Elliott mentioned that banks would avoid forced property sales where possible but highlighted ongoing activity in refinancing markets: "There's still activity happening; it's just changing."
Shayne Elliott concluded his interview by reaffirming ANZ's commitment to supporting customers through these challenging times.