The external environment in which we operate informs our strategy and impacts our ability to create value.

Global trends are shaping society

Technological change: creating new services and products, disrupting established industries and reducing barriers to communication and trade. Cyber security risks are increasing. New competitors to traditional banks are emerging.

Globalisation: enabled by new technologies, and the free movement of capital, goods and people — is increasing growth in new economies and restructuring industries in old economies.

Demographic changes: urbanisation, strong population growth in Australia and New Zealand, and an ageing population are changing customer demand and reshaping communities.

Strengthening but still uncertain economic conditions: low wage growth and high levels of debt are contributing to low rates of economic growth and social unease.

Environment and climate: communities are placing greater value on protecting the environment and supporting the transition to a low carbon economy.

Scrutiny of financial institutions: scrutiny of banks and the financial sector is continuing to increase following well publicised examples of poor conduct. Concerns about debt levels in the economy are being raised.

These global trends present us with risks and opportunities

Innovation and new technologies: present us with opportunities to innovate and meet the needs of our customers for digital banking solutions. Competition from existing and new competitors is increasing and we must be able to respond quickly and improve our digital capabilities. We will need to serve customers in new ways, and continue to strengthen our cyber security capabilities.

Revenue growth: is expected to be lower than in the past. With increasing competition and regulatory requirements, new approaches are needed to generate returns to shareholders and deliver products and services.

Housing: demand for home lending is strong in Australia and New Zealand as a result of population growth. Community concerns about housing affordability are high and regulators are focused on housing lending standards.

Globalisation and the rise of Asia: creates opportunities for our customers to increase their cross border trade and investment. Increased trade and investment leads to higher incomes and employment for the communities in which ANZ operates. Community concerns about aspects of trade and investment can nevertheless limit opportunities.

Society’s expectations are high: we need to acknowledge previous poor practice and raise standards across all our activities. We are expected to strengthen standards on issues such as human rights and environmental sustainability. We need to focus on ways we can contribute positively to the wellbeing of the communities in which we operate.

Staughton Group

STAUGHTON GROUP

CASE STUDY

With our help, the Staughton Group has grown impressively over the past five years, and now employs more than 200 people.

Its growth is supported by a commitment to constant innovation, increasing efficiency, and a desire to reduce waste. It has spent countless hours perfecting methods for packing and storing pet-food in bulk, resulting in the reduction of thousands of kilograms of packaging that would otherwise be an additional cost and would end up in landfill.

As the company has increased in size, our Business Growth program has been there to help manage its transition. The results speak for themselves — not only was the Staughton Group Regional Exporter of the Year, but Edward Staughton was also New South Wales Young Entrepreneur of the Year.

Edward and Simon Staughton — Staughton Group, a high-quality food manufacturer, primarily in the pet food market.

Our strategy aims to respond positively to this environment and meet societal expectations

Create a simpler, better capitalised, better balanced and more agile bank: we are aiming to reduce operating costs and risks by removing complexity and exiting low-return and non-core businesses.

Focus our efforts on areas where we can carve out a winning position: we are making buying and owning a home or starting, running and growing a small business in Australia and New Zealand easy. We want to be the best bank in the world for customers driven by the movement of goods and capital in our region.

Drive a purpose and values-led transformation of the bank: we are creating a stronger sense of core purpose, ethics and fairness, investing in leaders who can help sense and navigate a rapidly changing environment. We are also looking to do more to address community concerns about housing, environmental sustainability and financial wellbeing.

Build a superior experience for our customers and our people to compete in the digital age: we are building more convenient, engaging banking solutions to simplify the lives of customers and our people.

“THE CHALLENGING LOCAL AND GLOBAL ENVIRONMENTS MEAN MANY AUSTRALIAN BUSINESSES ARE LOOKING TO DIVERSIFY AND THEY'RE FOCUSED ON WHERE THE WORLD'S LONG-TERM GROWTH IS — ASIA. MORE OF OUR CUsTOMERS ARE COMING TO US TO SEEK ADVICE ON REGIONAL DEMAND FOR THEIR PRODUCTS OR SERVICES AND TO HELP TO IDENTIFY NEW REVENUE OPPORTUNITIES.”
— Mark Hand, Managing Director,
Corporate & Commercial Banking, ANZ
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