Check against delivery
Thank you for the opportunity to appear today.
Before I begin, I would like to express my support for Helen Haines and her family as she recovers.
Violence and intimidation do not belong in our public discourse, and I wish all parliamentarians safety as they do their work.
The year since I last appeared has been one of significant change, both at ANZ and externally.
This morning, I will update you on ANZ's progress on serving our customers and then discuss broader developments.
Last year, I set out a clear standard of behaviour for ANZ: to put customers first.
At that time, it was clear that we needed to significantly improve how we care for our customers.
Since then, we have focused relentlessly on this.
It is why we are working on:
- how we manage risk;
- safely welcoming Suncorp Bank customers to ANZ by June 2027; and
- keeping branches open in regional areas.
And, as I discussed last year, simplifying the bank has meant letting go of many of our people.
I know that this process has been very difficult, and we have sought to offer appropriate support.
But these workforce changes were necessary.
Of all our work over the last year, I know you are particularly interested in what we are doing to manage risk to better look after our customers.
This work is about delivering services in a customer friendly manner and meeting our legal obligations.
We have paid customers back for our mistakes and acted quickly to stop any further harm.
But beyond this, we are fixing the underlying conditions that allowed those problems to occur.
This transformation takes time to get right and to make the improvements sustainable.
We have designed stronger processes and controls, enhanced governance, improved accountability and increased transparency.
And this work will continue at pace and with focus.
Earlier this week, we published reports from the independent reviewer.
These show that we are on track, subject to challenges that are normal for programs of this scale.
Let me now briefly touch on access to branches.
In the last year, ANZ has announced the commencement of Saturday trading at over thirty branches, the opening of a branch in Chinchilla to replace an agency, and a regional banking commitment.
Under the commitment, ANZ will maintain a branch presence in every regional community where either ANZ or Suncorp Bank operates a branch today until at least the end of 2030.
We will also maintain at least two branches in regional communities with more than 100,000 people and at least three in communities with more than 200,000.
To meet this standard, we are opening a new branch in Bendigo.
As they join ANZ, Suncorp Bank customers will gain access to ANZ's much larger national network, while ANZ customers will benefit from an enhanced regional network.
We have also established a consultative committee with the Financial Sector Union to focus on the branch work.
Separately, we've been cooperating through the Australian Banking Association on regional banking to work across the industry on sustainable solutions.
This cooperation will continue.
The broader environment for our customers has also been dynamic.
Three clear themes are evident.
First, geopolitical instability has heightened and is now, sadly, the new normal.
As international relations move from principle-based to power-based approaches, nations and businesses are prioritising trading resilience over efficiency.
Governments are producing critical inputs at home or sourcing them from reliable partners.
Second, global competition for capital to fund AI infrastructure, defence, energy transition projects and government deficits has intensified.
In addition to increased energy costs from the Middle East war, this expenditure super cycle has pushed the price of money higher globally.
In Australia, the official cash rate is at its highest level since 2008, and US bond yields were recently at their highest since 2002.
Third, Western social cohesion is being challenged because of concerns about living standards and other issues.
This is clearly true in my home, Europe, and, to a lesser degree, here in Australia.
After a decade of low productivity gains, many Australians feel they are not getting ahead.
We think the next year will continue to be one of lower growth.
Our forecasts point to GDP growth reaching its low point in mid-2027, followed by a modest recovery, and unemployment peaking by late 2027.
These themes all demand deep consideration and, I'm sure, are well known to you.
There are good reasons to be optimistic, however.
First, the nation's institutions are solid.
We have a well-functioning, stable democracy and deep respect for the rule of law.
These are traits that investors appreciate.
Second, the nation is well placed geographically.
Asia remains the world's fastest-growing region, and Australia can capitalise on its proximity.
As the country's largest trading bank, we believe in the opportunities from engaging with our regional partners.
Third, Australia is resource rich, with abundant minerals, energy and land and world-class expertise in infrastructure.
These provide the nation with a solid base for economic growth.
Fourth, and lastly, Australia has a world-class education sector.
Our schools and higher education system drive our businesses, support our economy and contribute to our communities.
Few countries have as much going for them as Australia, and we should maximise those advantages.
To capitalise, we would encourage policies that:
- Focus on growth, innovation, and an environment that supports business;
- Get the balance right between deregulation, national resilience and openness; and
- Further develop Australia's export strengths, like education, resources and tourism.
Respectful dialogue like ours today will help us identify solutions that support the national interest.
Thank you for your time and I look forward to your questions.
