Good morning everyone, thank you for joining us.
It was only a month ago I met with you to discuss our updated strategy - ANZ 2030.
It is an honour to be here today presenting my first full-year results for ANZ.
I reflect on my first six months with the bank as a period of significant and necessary change which lays strong foundations for future growth.
External environment
Before turning to performance, I will briefly reflect on the external environment.
The global landscape is clearly more complex than it has been for many decades. Geopolitical realignments and unsettled tariff rates make us more vigilant, and our risk appetite processes and settings are responding in real time.
But these issues shouldn't distract from the opportunities.
Much of the impact of tariffs has been to reallocate trade, rather than reduce it. Intra-Asian trade, for instance, is much stronger and we are following our customers as they find new sources of supply and demand.
The global economy has grown more than 3% over the past four years well above the 1% benchmark for global recession.
In fact Greater China and India are likely to grow above 5% this year while Asia overall will remain the fastest growing economic region.
Turning to our domestic markets while inflation has reduced from cyclical highs in Australia and New Zealand the cost of living and cost of inputs both remain high.
Reflecting the uncertain environment consumer confidence in Australia remains 23% below pre-pandemic levels however it is around 12% higher than its low point in mid-2023.
This is not translating into delinquencies the way it has in the past but the pressure on some of our customers is undeniable and we are focussed on supporting them.
In an unsettled world, Australia and New Zealand are stable economies which are attractive, particularly for investment from offshore. This complex external environment plays to ANZ's strengths including our diversified portfolio and geographic footprint across 29 markets.
Financial Performance
Now, turning to our key performance metrics. Adjusting for the impact of significant items which we published on 31 October our Cash Return on Tangible Equity was 10.5%.
We announced a final dividend per share of 83 cents franked at 70%, bringing the full year dividend to 166 cents per share. This is consistent with our prior half and commentary made at our recent strategy update.
Our balance sheet and capital position remain strong with Common Equity Tier 1 at 12.03% at the end of September having improved 25 basis points in the second half.
As mentioned at the strategy update we have ceased the remainder of the share buy back and are returning surplus capital from the Non-Operating Holding Company which results in a proforma CET1 ratio of 12.26%.
ANZ 2030
Today's results reflect the benefits of our market-leading positions in Institutional and New Zealand which again delivered a solid performance in 2025.
They also demonstrate the importance of our ANZ 2030 strategy which aims to materially improve the performance of our Australia Retail and Business & Private Banking divisions while extending our leadership in Institutional and New Zealand.
Our strategy will allow us to accelerate growth and outperform the market, unlocking our potential to win the preference of customers, shareholders and the community.
The foundations are based on four strategic pillars: Customer First, Simplicity, Resilience and Delivering Value.
They will be underpinned by our culture, our people and technology.
It has two clear phases. The first - across FY26 and FY27 is about delivering on immediate priorities at pace in order to get the basics right including a substantial improvement in productivity and initial investment for growth.
In the second phase beyond 2027 we will realise the benefits of those strong foundations, accelerate growth and outperform the market.
In both phases, we will continuously improve our returns and deliver value.
Progress against our immediate priorities
As I said we have five immediate priorities and I am committed to regularly updating you on our progress.
Given my recent strategy presentation, I will focus on what has changed since then.
Embedding the leadership team and culture reset
First, our new leadership team. Stephen White, our Group Executive Operations, has already joined ANZ and is here today.
Three more Group Executives will join in the next three weeks.
This includes Pedro Rodeia as Group Executive Australia Retail.
Christine Palmer as our new Group Chief Risk Officer and Donald Patra as our new Group Chief Information Officer.
Having the right people to embed the right culture is key to executing our strategy.
Accelerating the integration of Suncorp Bank
We are on track for our second priority bringing forward the integration of Suncorp Bank to accelerate value creation for our shareholders, benefit our customers and significantly reduce operational complexity.
We will complete a safe and secure migration of Suncorp Bank customers to ANZ by June 2027 and this work is already underway.
I'll speak more to Suncorp Bank's performance shortly.
Delivering a single-customer front-end
Our third priority is also on track, to accelerate the delivery of the ANZ Plus digital front-end to all of our 8 million retail and SME banking customers, by September 2027.
To support these efforts, we have appointed Guilherme Bueno as Managing Director, Digital Channels in Australia Retail.
He brings extensive global experience on digital development and integration to his role, which will be critical for the development of the ANZ Plus digital front-end and Suncorp Bank integration work.
Reducing duplication
We have made significant progress on our fourth priority, simplifying the bank and reducing duplication.
We recently announced the reduction of 3,500 roles by September 2026 as well as the exit of 1,000 managed services consultants.
In order to reduce uncertainty for our people, we have moved at pace.
By the end of October more than 30% of the 3,500 roles had exited the bank and we are on track to complete the majority by the end of the first half FY26.
All of the targeted 1,000 managed services consultants have exited.
Improving non-financial risk management
Fifth, we continue to make progress in uplifting our non-financial risk management a critical element of our resilience pillar.
Today I'm pleased to confirm the Root Cause Remediation Plan we submitted to APRA in September has been approved.
This is a significant milestone which marks the next phase of ANZ's response to its Court Enforceable Undertaking.
This is a multi-year process to deliver substantial changes to our culture, operating model and risk management practices and make sure those changes become part of the way we do business.
We expect this work to take three years with the first year dedicated to design followed by two years to implement and embed.
Improving non-financial risk management and ultimately customer outcomes is a critical pillar of the bank's strategy and for every employee at ANZ.
I continue to be responsible for personally managing and executing this program and I am committed to ensuring we get this right.
Our Strategic Pillars
I spoke to you in detail about our four strategic pillars in October.
Today, I will focus primarily on our Customer First pillar, including how each of our divisions performed this year and focus areas going forward.
I will set out the base line of the key customer-focused metrics, which we will consistently report going forward.
Customer First
Australia Retail
In Australia Retail excluding Suncorp Bank we have 6.4 million customers and 11.7% of the market view us as their main financial institution.
Our retail strategic NPS was marginally higher through the year to +1.7 but still ranked last of the big four.
While these metrics are not where they should be they do provide scale for our business and a base line to build upon.
Our total deposits grew below system but importantly we continued to focus on growing save and transact deposits up 12% throughout the year.
This is an important metric for us to focus on given the close linkage to MFI and returns.
In this regard, we saw a change in mix between savings, transaction and term deposit products which was managed closely from a margin perspective.
While home lending balances were up 5%, growth was below system and our proprietary origination was not where it needs to be.
As I have said Australia Retail presents a significant opportunity for growth and I view these results as a starting point which underpins why the strategy we announced last month is essential.
For Australia Retail, our ANZ 2030 strategy lays out a clear plan to drive growth, focused on.
First, investing in differentiated propositions for customer segments, including the mass affluent and people relocating to Australia;
Second, strengthening our proprietary origination, including increasing lenders in branches by up to 50% over the next five years;
And finally, by elevating the channel experience including through the ANZ Plus single customer front-end as well as improving the customer experience in branches and contact centres.
These strategic actions, combined with a reduction in our cost to operate will drive a significant improvement in our cost to income ratio and returns, which will start to become visible in FY26.
We will keep you updated on these actions as they progress at each half and full year results.
Business & Private Bank
Moving to our Business & Private Bank, this is a critical deposit-led franchise with approximately 600,000 customers excluding Suncorp Bank.
Our MFI share remained stable at 16.4% and we saw an upward trend in strategic NPS through the year, with a 4-point increase but still the lowest of the big four banks.
Our transactive and savings deposits and business lending both grew by 3% but were below system.
To be clear we see a significant opportunity to improve our Business banking performance through our ANZ 2030 strategy.
Our plan is focused on three key areas:
First ensuring our front line matches our ambition, by materially increasing the number of bankers by up to 50% over the next five years, and giving them much better tools;
Second bringing the right platform to the right customer including ANZ Plus to SMEs, and our leading payments platform Transactive Global to the middle market segment where around 4,000 of these customers are already benefitting from this platform.
And finally growing the Private Bank, which continued to perform well, with investment funds under management up 18% while home loan FUM was up 12%.
Under ANZ 2030, we will increase the size of our private banking relationship manager workforce, improving the quality of our offering and leveraging the work we are doing in Australia Retail with the mass affluent segment.
Suncorp Bank
Considering its ongoing transition into ANZ, Suncorp Bank continued to perform well this year increasing its retail MFI share marginally to 2.5% and improving its retail NPS score to 16.5 - well above any of the big four.
Suncorp Bank's customer base has grown by almost 5% to approximately 1.3 million customers since the acquisition was announced in June 2022.
This is a high-quality franchise with save and transact deposits and home and business lending growing by 6% and 3% respectively.
We look forward to bringing these customers into the ANZ franchise by June 2027, delivering benefits of scale and experience to both our customers and our shareholders.
Institutional
Our Institutional business posted a solid performance and continued to extend its leadership in relationship strength across Australia, New Zealand and Asia.
According to Coalition Greenwich, we are the #1 Institutional Bank across Australia and New Zealand for relationship strength and quality, and the best bank for Corporate Banking in Asia.
In Australia customers rated us number one in every major category for the first time in the history of the survey.
This included number one for transaction banking, where our operational deposits increased 12%. This was combined with a strong Markets performance, delivering more than $2.1 billion in revenue.
Our ANZ 2030 strategy is focused on three areas for Institutional:
First, by targeting customer acquisition, specifically financial institutions, corporates with links to our home markets and multinationals operating intra-Asia;
Second, by continuing to invest in our market-leading cash management and market flow platforms;
And finally, strengthening our capital management muscle to optimise returns.
Our ambition is to consolidate our leading position as the best transactional bank in Australia and New Zealand, and the bank that connects these home markets to the world and vice versa.
This will allow us to continue to deliver sustainable financial returns which are increasingly resilient to interest rates, financial market and credit conditions.
New Zealand
Our New Zealand business remained a clear leader in the market, with 2.7 million personal and business banking customers, and MFI share over 30% for both segments.
We are number 4 of the major banks in Personal NPS, reflecting that we still have work to do to improve the customer experience and our product offering.
Save and Transact deposits increased by 5%, while home loan and business lending was up 4% but in this case was below system.
We remain focused on being the bank of choice in New Zealand.
Our ANZ 2030 strategy aims to extend our strong competitive position for the benefit of our customers and shareholders by:
First continuing to modernise our platforms and bringing the customer experience and journeys in line with our leadership position in the New Zealand market;
Second delivering bespoke propositions to customer segments, in particular to affluent and small business banking customers;
And finally by investing significantly in giving our business bankers the right tools to outperform.
Today's results highlight three realities.
First, our franchise has a strong competitive position. We have two scale markets, Australia and New Zealand, and two market leading positions, in our Institutional and New Zealand businesses. We also have a well-diversified business benefitting from our strong presence in the fastest growing economic region in the world - Asia.
Second, we have a significant opportunity indeed obligation to improve our performance in Australia Retail and Business Banking.
In Institutional and New Zealand, we are focused on extending our current leadership.
And third, we have the right strategy - ANZ 2030 - to unlock and deliver value from these opportunities.
With that, I will hand over to Farhan. Thank you.
