Shayne Elliott

Our Strategy

Two years ago it was clear that we needed to reshape ANZ’s future...

To ensure ANZ adapted more quickly, we simplified our strategy to focus on being the best bank for people who want to buy and own a home, and for people who want to start, run and grow a business. In Institutional Banking, we want to be the best bank in the world for customers who move goods and money around the Asia-Pacific region.

This allowed us to focus our resources on opportunities where we have a competitive advantage and can win. However, we have also made some difficult calls. Some say the essence of strategy is choosing what not to do. We have chosen to sell businesses or investments where we were not in a winning position or developing our ANZ brand, or where they added unnecessary complexity and risk.

This has included the divestment of our pensions and investments business in Australia, our retail and wealth businesses in six Asian countries, UDC asset finance in New Zealand, and our minority investments in China’s Shanghai Rural Commercial Bank and Metrobank Card Corporation in the Philippines.

These choices have also involved a significant reshaping of our Institutional Banking business as part of improving the capital allocation and improving returns. This year it has involved a further $18 billion reduction in Credit Risk Weighted Assets, bringing the total reduction since September 2015 to $46 billion or 27%. We are also focusing on a smaller number of customers who most value our capabilities and our network, including our presence in Asia.

Today, we are at the mid-point of executing a multi-year transformation of ANZ and I am pleased to report that 2017 has seen better outcomes for shareholders and genuine progress in delivering better outcomes for customers and in rebuilding community trust.

Customers and the Community

For customers our progress includes initiatives to make banking fairer and simpler supported by an increased emphasis on innovation. For example, we extended our mobile payments leadership, established with Apple Pay™ and Android Pay™, with the launch of Samsung Pay and FitBit™ Pay. Mobile payments are also important for small business and we introduced BladePay™ to support this growing opportunity.

We also believe in the value of voice-activated transactions and launched MyVoice identity and security solutions in Australia and New Zealand.

We are also rebuilding trust through a focus on our core purpose: to help shape a world where people and communities thrive. We invested more than $131 million in the communities in which we operate and I am particularly proud of the impact our financial education and employment programs are having in terms of creating opportunities for more people to participate socially and economically.

We are focused on creating the right culture to support our strategy. The way in which we treat our stakeholders is reinforced by our values. Our values — the behaviours expected of our people — are not just words on a page. They are embedded in how we do things, like how we manage and reward our people's performance. They are also used as a foundation for good decision-making and are embedded in our operating rhythm, for example, across our Australian Branch Network.

We took a positive and proactive stance at our appearances before the Australian Parliament. We have made product, fee and rate changes to benefit customers and the community and everyone in the senior management team has spent more time in branches, call centres and regional and rural areas talking to our customers and the community. Looking ahead, we are seeking to deliver value to all our stakeholders through four factors:

  • Simplicity and focus. Choosing a few things to do, doing them extremely well and stopping everything else.
  • Speed to market. Listening to customers, testing, developing and launching solutions quickly and repeating at pace.
  • Increase digitisation. Focusing on mobile and voice solutions for customers.
  • Culture. Building a stronger sense of core purpose, ethics and fairness, and investing in people who can sense and navigate the rapidly changing world.

ANZ today is leaner, stronger and fitter; better placed to manage the changing environment while still investing in new capabilities to deliver long-term sustainable earnings growth.

We could not have achieved so much in 2017 without the sustained effort and dedication of our people, and I thank them all for their contribution. 

Shane Elliott's Signature

Shayne Elliott

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