I'd like to start by also apologising to the customers who we have let down. There have been unacceptable failings. It's simply not good enough and we will do much better.
It is my very clear expectation that we see measurable improvements across the bank to better protect and care for our customers and for our business sustainability.
On the Markets matter, while there have been no allegations of market manipulation, it's clear to me that we did not meet the standards expected of us.
We have apologised to AOFM for our conduct and communication. As the Chairman mentioned, we have also offered to pay to the AOFM the revenue we earned as duration manager.
Since I joined ANZ in May, I have been very clear on - and published on my very first day - our immediate priorities. They are: developing a high-performance culture, accelerating the pace of delivery and materially improving our risk management capabilities.
To be clear, the matters we are addressing today are a materialisation of the risks raised by APRA and the Enforceable Undertaking, which require us to have a more effective NFR framework.
It's important to note that we are not uplifting NFR simply to meet the regulators' expectations. We are doing it because it is better for our customers and the quality of our business.
The work is very much underway, with several pillars well developed and in motion.
We have now very strong governance in place both at management and Board level, including a weekly forum of my executive team, chaired by me, to oversee and drive change as well as monitor our progress.
We are lifting our people capabilities with key appointments, including Les Vance who has joined ANZ in recent weeks to lead our central program of remediation. The program will include a cultural reset, and will be fully operational this month.
We have refined our NFR framework, risk typologies and completed our root cause analysis. And our remediation plan is on track to be submitted to APRA, 30 September 2025, this month.
As mentioned earlier by Paul, we have a formal plan with ASIC to remediate our remaining matters with external assurance in place. The program addresses both the EU and the ASIC matters holistically.
We are continuing the uplift of the Three Lines of Defence operating model, and strengthening in particular our first line of defence teams, while re-defining and planning the required changes to our risk culture.
You would have seen in our release today that we expect to spend approximately $150 million on implementing the NFR remediation work. In line with our simplification agenda, this is going to be funded by stopping work that is not a priority at this point. This investment reflects the significance of the task we are undertaking.
Before we open to questions, I'd like to reflect on something I said to our 8,000 people leaders last week. ANZ has a clear purpose to shape a world where people and communities thrive.
From my very first day I embraced this purpose. However, purpose is not about words. Purpose is about actions, it is about how we effectively deliver for our customers. I was very honest with the team, we have not lived up to our purpose. And it's the reason we are simplifying the company - so we can really concentrate on executing that purpose, on making it a reality. On getting the basic things right.
Today's announcement reinforces the fact that change is needed, and that we need to operate in a different way than in the past. That's critical, and that demands we do fewer things, much better. We are getting again, the basics right.
I want to close by assuring you that we understand the size of the task ahead, and we are focused on fixing it as quickly as possible. With that, we will open up to questions now.
