Good morning.
The year 2024 marked a significant period for ANZ as the company completed several strategic initiatives. Shayne Elliott, Chief Executive Officer of ANZ, provided insights into these developments and the company's performance during his speech on November 8, 2024.
ANZ finalized the acquisition of Suncorp Bank, which has been performing better than anticipated. Elliott stated, "The bank we bought is performing even better than when announced over 2 years ago, and we are confident synergies will be larger and earlier than planned."
In addition to this acquisition, ANZ sold its shares in AmBank, contributing to one of its largest buybacks. The company reduced its share count by thirty million shares with more reductions expected.
The Institutional division achieved record results supported by their Transactive platform. Elliott highlighted that they had achieved "record revenues, record profit before provisions, and record return on equity."
ANZ Plus emerged as a key strength within the retail banking sector in Australia. In just two years, it captured a 1% share of all retail deposits across the country through customer opt-in.
Strategically, ANZ is transitioning to lower-cost platforms to meet increasing customer expectations and regulatory demands. The dual-platform business model aims to serve all customers globally using either Plus or Transactive platforms.
Financially, ANZ reported its second-highest revenue ever in 2024 with lending and deposit volumes growing strongly. Customer deposits increased by 11% year-on-year due to onboarding from Suncorp Bank and organic growth.
Capital efficiency programs released approximately $30 billion of Risk Weighted Assets while several debt ratings were upgraded throughout the year.
Elliott also provided an update on Suncorp Bank's integration into ANZ: "Our investment in Suncorp Bank was to build scale and provide a platform for growth in Queensland." Since joining forces with Suncorp Bank colleagues and customers in August, early successes have been observed including quicker loan approvals and improved wholesale funding costs.
Looking ahead towards its bicentenary celebration in less than four years' time; Elliott outlined ambitions for further growth through initiatives like AI integration within Plus by collaborating with partners such as Palo Alto-based AI firms along with expanding services offered under both platforms - Plus & Transactive - ultimately aiming at simplified operations benefiting customers across segments ranging from small businesses up till multinational corporations alike!
Elliott concluded by emphasizing technological advancements: "Like web/mobile/cloud revolutions before it; Artificial Intelligence (AI) will fundamentally change how we operate/serve/compete." This shift is expected not only enhance productivity but also offer competitive advantages through strategic solutions powered by contemporary technology stacks built around key partnerships such as Salesforce/ServiceNow/AWS among others...
With these accomplishments behind them alongside future aspirations set forth today; Farhan now takes charge continuing onward journey towards sustainable growth prospects envisioned ahead!