ANZ celebrates ‘best ever’ year after Suncorp acquisition hearing

ANZ celebrated its “best-ever 12 months” at its annual basic assembly, with the main financial institution reinforcing its ties to Queensland after the Suncorp Financial institution (Suncorp) acquisition tribunal listening to ended final week.

ANZ chairperson Paul O’Sullivan (pictured above left) and ANZ CEO Shayne Elliott (pictured above proper) outlined the financial institution’s love for the Sunshine State – a heavy theme all through each of their speeches to the board held in Brisbane on December 21.

The tackle, which touched on many points, ended with Elliott outlining ANZ’s priorities for 2024.

Elliott: 2023 ‘undoubtably’ ANZ’s ‘finest ever’

Beginning with the monetary outcomes, ANZ’s full-year money revenue of $7.4 billion, up 14% on the prior 12 months, might be attributed to all 4 of its divisions – Australia retail, industrial, institutional, and New Zealand.

“A 12 months in the past, I described our 2022 outcomes as ‘top-of-the-line set of outcomes we’ve got delivered’ and 2023 is undoubtedly our best-ever,” stated Elliott.

“Every of them has a powerful sense of objective, a transparent technique constructed on distinctive strengths, and generates returns sustainably above price of capital.”

Elliott stated the main financial institution had began the brand new monetary 12 months effectively regardless of “excessive ranges of competitors and issues round a slowing of the financial system”, with the financial institution’s first quarter income in keeping with the second half of the 2023 monetary 12 months.

“ANZ has demonstrated a confirmed capability over a few years to handle our bills effectively. Whereas dealing with into ongoing inflationary pressures, we proceed to execute on productiveness initiatives to partially offset these headwinds,” Elliott stated.

ANZ aggressive, not market-leading on pricing

Apparently, Elliott sought to ascertain ANZ’s place within the house mortgage and industrial lending market.

Elliott stated lending progress remained robust throughout ANZ’s retail and industrial franchises “specifically”.

Nevertheless, he admitted that the main focus was to stay aggressive and dependable fairly than providing the sharpest charges.

“Our funding in house mortgage processing functionality and capability and improved dealer expertise are offering ongoing advantages,” Elliott stated.

“We need to develop our Australian house mortgage ebook profitably by persevering with to supply dependable turnaround instances, and in keeping with that we’re aggressive however not market main on pricing.”

ANZ’s love letter to Queensland

Whereas each speeches touched on the whole lot from cybersecurity, ESG, and local weather change to denouncing racism and antisemitism, the purpose was clear: ANZ likes Queensland.

The contentious acquisition was rejected due to issues it will scale back competitors in Queensland.

Nevertheless, ANZ has argued the acquisition would create a mixed financial institution that’s “higher outfitted to reply to aggressive pressures to the good thing about Australian shoppers” and ship “vital public advantages, notably in Queensland”.

Beginning with the latest information, each Elliott and O’Sullivan acknowledged the catastrophic flooding that that has occurred in Far-North Queensland within the wake of cyclone Jasper.

ANZ had contributed $100,000 to restoration efforts as a part of the state authorities’s fundraising efforts.

“We’re particularly grateful to our employees who labored laborious to maintain branches open and guarantee clients had entry to providers,” O’Sullivan stated.

“The financial institution is offering assist packages for affected clients as they get better – together with mortgage cost aid in addition to waiving charges for restructuring enterprise loans and accessing time period deposits early.”

Elliott and O’Sullivan then reminisced concerning the wealthy historical past of ANZ in Queensland. O’Sullivan talked concerning the board’s go to to Brisbane, Toowoomba, and different areas assembly small enterprise homeowners, whereas Elliott touched on the various ANZ initiatives presently operating or piloted within the state.

“We have now been serving the neighborhood right here since 1851 when the Union Financial institution – a predecessor to the trendy ANZ – opened in Queen Road…not removed from the place we’re assembly right this moment,” O’Sullivan stated.

“At ANZ, we’re optimistic about Queensland – a state blessed with an awesome mixture of industries, proximity to Asia and a younger and fast-growing inhabitants.”

Waiting for the ANZ-Suncorp acquisition choice

Finally, each speeches led to straight addressing the ANZ-Suncorp acquisition.

Elliott stated ANZ has “thrilling plans” to assist extra clients in addition to the financial progress of Queensland, which is “one of many quickest rising states”.

“We imagine younger Queenslanders ought to have the ability to entry world-class jobs similar to these, of their house state,” Elliott stated.

O’Sullivan outlined the subsequent steps for the acquisition when the Australian Competitors Tribunal makes its choice in February.

“If we’re profitable on the Tribunal, the acquisition will then want the approval of the Federal Treasurer and the passage of laws by way of the Queensland Parliament,” O’Sullivan stated.

“We proceed preparations to convey Suncorp Financial institution clients and other people into the ANZ Group, topic in fact to those circumstances being met and far appreciated the Queensland Authorities’s submission to the Tribunal in assist of our acquisition.”

ANZ’s priorities for 2024

Ending the speech, Elliott outlined 5 of ANZ’s high priorities for 2024:

Proceed to run the group prudently, utilizing power to assist clients by way of difficult instances and search alternative from our regional community,
Additional enhance productiveness, utilizing instruments like Generative AI to construct additional capability for funding,
Develop the variety of clients utilizing ANZ Plus and deepen their engagement,
Proceed to take a position properly in Business, Institutional and New Zealand,
And at last, full the acquisition of Suncorp Financial institution.

“Whereas the acquisition of Suncorp Financial institution would considerably improve the size of our retail and industrial financial institution, serving to us to compete much more successfully, if the transaction is blocked, we stay assured within the execution of our Australian progress technique,” Elliott stated.

“We have now a fortress stability sheet, the correct portfolio, and a confirmed staff, to make sure we will assist our clients whereas delivering for our shareholders by way of difficult instances.”

“Let me end by thanking our folks at ANZ for his or her laborious work and wishing you and your households a really blissful festive season and a affluent 2024.”

What do you consider ANZ’s 12 months and its plans for 2024? Remark beneath.