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This information is being issued to help ANZ customers impacted by the Queensland floods, and those who they may go to for help, understand what assistance is available from ANZ.

• Our customers should call 1800 149 549. This is a dedicated number for customers affected by the Queensland floods and directs to a team trained specifically to help customers experiencing financial difficulty.
• An alternate number is available for customers with commercial or small business loans impacted by the floods: 1800 351 548 (option 1, then 3).
• Our staff can help provide access to ANZ's special package of support, which includes:
  • suspending repayments on loans, including credit cards, for up to three months (with interest capitalised);
  • waiving bank fees associated with restructuring finances due to flood impacts;
  • providing temporary adjustments to lending limits, including credit cards, to assist with unexpected costs; and
  • accessing term deposits early without incurring any fees.
• This team can also provide information to assist customers to manage their finances and can provide details about independent support available from financial counsellors.
• Customers with ANZ Insurance and /or OnePath Insurance policies, should lodge claims as soon as possible - assessors are already inspecting damaged homes. Some customers may also have access to emergency financial assistance and accommodation under their Insurance policy. To lodge a claim, ANZ Insurance Personal and Commercial customers can contact 13 16 14 and OnePath Insurance customers contact 13 20 62.
• Over the coming weeks and months as customers are in a position to better understand the impact of the floods on their personal circumstances, they are encouraged to contact ANZ if they require further assistance. Our team will then work with affected customers to tailor repayment arrangements on a case by case basis.
• Separately, we have committed $1 million in response to the Queensland floods including a $500,000 donation to the Queensland Premier’s Disaster Relief Appeal and $500,000 for longer term recovery efforts. In addition, donations by any of our 45,000 staff to the Premier’s appeal will be matched by ANZ. This has seen a further ~$200,000 added to the appeal to date.
• We are also supporting our staff impacted by the floods with paid leave to manage their personal circumstances or to support community recovery efforts, emergency cash grants of $1,000 to help with unexpected costs and counselling services for staff and family members.

More information

• ANZ Support Package
• ANZ Customer Connect
• Queensland Government Floods website
• Government Works With Banking Industry on Floods Help

We have taken a significant step in our super-regional strategy by acquiring selected banking businesses in key East Asian nations.

Acquisition positions for future growth

We have announced the progression of our super regional strategy through the acquisition of selected banking businesses in Singapore, Taiwan, Indonesia, Hong Kong, the Philippines and Vietnam.

The acquisition includes retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong and includes 54 branches which significantly builds our retail and wealth capability in the region. We have also purchased the businesses serving large corporates in Taiwan, the Philippines and Vietnam.

Announcing the acquisition ANZ Chief Executive Officer Mike Smith said:

"ANZ has a long-term commitment to investing in the region. The businesses that we’re acquiring strengthens our network through Asia and is a further stepping-stone in our super regional strategy."

"We also know that with this commitment comes the opportunity, and responsibility, to further demonstrate the positive contribution we can and will make to the development of the economy, the banking sector and communities in our chosen markets," said Mr. Smith.

• Read the acquisition statement (PDF 76kB) and investor presentation (PDF 260kB)

Supporting of local talent

Our employee talent and diversity strategies focus on building local leadership capabilities and creating a diverse and inclusive workforce that represents and understands the communities we serve.

Commenting on the acquisition Asia Pacific CEO Alex Thursby said “it further demonstrates to all of our stakeholders, including staff, existing and potential ANZ customers, governments and regulators, that we are committed to investing in the region.”

"For example, in Asia we have a strong focus on providing local employment opportunities and recruiting people with deep experience and connections in the region. We now have more than 2,400 people employed across our local businesses, including over 400 additional appointments in the past year."

This year over 70 employees from the Asia region have been chosen to participate in a Leadership Talent Program. The program helps to accelerate development through focused career planning, specialised training and the opportunity to participate in leadership experiences. Career development of participants is supported by a senior mentor and networking. Around 200 of our Asia staff have also recently participated in Corporate Responsibility strategy development workshops conducted in Beijing, Hong Kong and Ho Chi Minh City.

A new ANZ program offers a two-year rotational program for outstanding employees to develop their skills, experience and potential as a generalist banker through on-the-job learning, training and senior executive mentoring.

Each of these initiatives supports the development of high-potential candidates through a mix of coaching, on-the-job experience and other development opportunities. These groups will play a key role in shaping our future success across the region.

Read more about:

• ANZ Asian Insider recruitment

Contributing to sustainable development

East Asia stakeholders engaged in the development of our Corporate Responsibility strategy - including NGOs, governments and regulators - have encouraged ANZ to continue our focus on improving money management skills and access to basic banking services in under-served communities.

We recognise that needs differ between the communities we operate in and we will ensure that our regional Corporate Responsibility programs are flexible to allow for locally targeted applications.

Initiatives like WING in Cambodia and ANZ’s recently announced plans to establish a rural bank in western China are examples of how we are supporting rural economic and community development.

Effective, timely and appropriate disaster relief responses have also been identified by stakeholders as an important priority. We support efforts to rebuild affected communities and assist in recovery through a range of activities including fundraising and volunteering.

Our staff recently supported efforts to rebuild a school badly damaged in last year's earthquake in the Sichuan Province of China. We supported the reconstruction of the school classrooms and purchase of furniture, while staff from ANZ China donated 1000kg of goods to the school and local community.

A new Disaster Relief policy will formalise the ANZ processes for developing and implementing relief responses for customers and communities impacted by man-made and natural disasters.

Read more:

• Supporting rural economic and community development (PDF 2.6MB)
  
• Learn more about WING on YouTube
• Media Release (PDF 28kB)

Engaging employees to deliver strong governance

It is important to demonstrate responsible business practices across our operations. We have learnt from experience that we need to ensure our conduct and decision making is consistent with best practice.

A strengthened Code of Conduct and Ethics including a supporting policy framework, provides employees with clear guidance on acceptable behaviour. The code is supported by a strong set of corporate values.

“Consistent, ethical behaviour is critical to earning trust amongst customers, communities, business partners and governments. They expect and deserve responsible and ethical business practices wherever we operate,” according to Susie Babani, Group Managing Director, Human Resources.

“However, decisions and situations are not always clear cut, so we are giving our people strong guidance on how to navigate complex or ambiguous ethical dilemmas to best serve the interests of our business and our stakeholders.”

For more information on ANZ’s responsible business frameworks read:

• Responsible business lending

ANZ CEO Mike Smith was joined by Aron Cramer of Business for Social Responsibility and the Hon Bill Shorten MP, Parliamentary Secretary for Disabilities and Children’s Services and the Victorian Bushfire Reconstruction, at the release of ANZ’s new Corporate Responsibility framework in Melbourne on 21 September.

Speaking at the launch, Mike said all bankers had a role to play in restoring trust and credibility in the sector.

“ANZ’s focus will be on contributing to society at three levels: building individual prosperity, contributing to thriving communities and by navigating growth responsibly.”

Read:

• Mike Smith's Speech (PDF 40kB)
• Aron Cramer's speech (PDF 23kB)

Watch:

• Archived webcast of the launch

We continue to research our approach to financial literacy to help ensure we achieve results.

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Managing money in difficult times

In the 2009 MoneyMinded Summary Report we look closely at the impact of the program on students.
The report illustrates the adaptability of MoneyMinded and its wide ranging application by our community partners. MoneyMinded has now reached over 78,400 people and nearly 2,800 facilitators from the community have been trained in its delivery.

The case study included in this report demonstrates how The Smith Family has used MoneyMinded to give high school students relevant and useful financial education while at the same time enabling them to achieve a Certificate I in Financial Services (Financial Literacy) qualification.

Acting CEO Australia, Graham Hodges, said “We have found that helping young adults develop positive financial behaviour early on can help improve levels of financial literacy within the community. Achieving a recognised qualification is also quite an incentive, and presents a real connection to both their education and vocational future.”

Key findings from the MoneyMinded case study include:

• By the end of the program nearly all students (99.5%) reported they knew how to prepare and stick to a budget to meet their financial goals.
• Students' levels of understanding about superannuation increased significantly to 85%, up from 29% prior to commencing the program.
• Post program, 92.5% of students said they had more confidence in their abilities to handle their finances.
• At completion of the program, the proportion of students who set goals increased significantly from 18% to 36%.

We initiated the development of MoneyMinded to help people, particularly those on low incomes, build their financial skills, knowledge and confidence. The program was launched in 2003 and is delivered by a network of financial counsellors and community educators, working for and with a range of community organisations across Australia and New Zealand.

• Learn more about MoneyMinded
• 2009 MoneyMinded Summary Report (PDF 1.6MB)

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Improved communications with financial counsellors

We have set up a dedicated contact point for Financial Counsellors working with customers in financial difficulty.

Financial counsellors are reporting a considerable increase in people accessing financial counselling services as a result of the current economic climate. This is causing pressure on the financial counselling sector’s capacity to help those in need. Through a dedicated resource we hope to fast-track financial counsellors' access to our staff working to assist customers facing hardship and provide a clear escalation point for issues.

Katie Rattigan, Manager Customer Connect, spoke about the newly created position when she represented ANZ at the recent Australian Financial Counsellors and Credit Reform Association (AFCCRA) conference in a panel discussion around how financial institutions are assisting customers in financial difficulty.

"We expect the appointment will give us the momentum and capacity to make much needed changes and improvements to our communication channels for Financial Counsellors as well as drive improvements in the promotion of the Customer Connect program to our customers," said Katie.

• Find out about our measures to help our customers in financial difficulty.

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Meeting basic financial needs

An evaluation of Progress Loans found it is effective at meeting the key financial needs of people on low incomes and that the program provides a positive, respectful customer experience.  The research also demonstrated that the program helps respond to financial exclusion by linking people on low incomes to the mainstream banking system and providing safe and affordable credit.

We commissioned the evaluation of Progress Loans, our small loans program delivered in partnership with the Brotherhood of St Laurence. The main objective of the research was to assess the effectiveness of the Progress Loans program in meeting the financial needs of consumers on low incomes and to identify ways to improve the program and strengthen its positive social impacts.

ANZ, together with the Brotherhood, will use the findings in this report to refine, improve, and potentially expand Progress Loans.

Mr Tony Nicholson, Executive Director of the Brotherhood of St Laurence, said: "Many people on low incomes have traditionally been excluded from affordable mainstream financial services and have often had to rely on very expensive forms of credit or simply going without household items that most Australians take for granted."

"With Progress Loans, we are able to assist many of these families on low incomes to borrow money via the mainstream credit market in a way which is sustainable and protects them from exploitation."

• Learn more about Progress Loans

Case study: How Progress Loans have helped customers

‘Margaret’ is in her late fifties and rents from the Victorian Office of Housing. The Progress Loan has helped her to purchase 'nice things' for the first time in her life. She has had three loans with the Brotherhood over a period of years. She has used past loans to purchase necessities such as a washing machine, a lounge suite and a refrigerator. "When I didn’t have the washing machine I’d wash my clothes by hand. So I think that was a big benefit to me, now I just put them in the machine." Her latest Progress Loan was used to purchase an air conditioner, a BBQ and a television. These items have assisted her to maintain contact with friends. "I've never had nice things, you know, I’m 55 now and it’s the first time in my life I’ve had nice things. I couldn't afford them otherwise, because I’m only on the disability pension. I know material things aren’t that important in life, but it is nice to have them sometimes. And everything I’ve got I’m really looking after." "[I bought the things] for my enjoyment, because in the summer I can have friends around. I can say to them ‘Would you like to stay for dinner?’ and we would barbecue a sausage or something." Margaret left school at 13 and had never had any form of credit in her life prior to loans through the Brotherhood. The loans have helped to build her confidence. "I know that I’ve got more confidence with myself and stuff like that. It’s made my self-esteem a lot better … I can pay things off and I’m more capable within myself to do things now."

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Stakeholder engagement

July saw the completion of further stakeholder engagement in Vietnam as well as in our Fijian and Tongan businesses in the Pacific. These engagements have proved invaluable in contributing to the development of our group-wide Corporate Responsibility (CR) strategy.

Employees, retail customers, business partners, local and international NGOs, governments and regulators have participated in the forums.

Engagements have revealed strong similarities in stakeholder concerns and expectations of responsible businesses and banks across our key geographies.

We are expected to grow our operations responsibly and in a manner which contributes to development across the region. Understanding and responding to the needs of local communities’ is fundamental to our operations and we should continue to use our skills and knowledge to build the capacity of our stakeholders.

Further external stakeholder engagement will be undertaken in Indonesia in August and the strategy will be finalised and launched late September.

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Supporting free trade and development in the Pacific

We are strongly supportive of Australian Government efforts to work with Pacific Forum Island Countries (FICs) to build the capacity and infrastructure they require to take greater advantage of trade across the region, including through more liberal trade in goods, services and investment.

In our submission to the Pacific Agreement on Closer Economic Relations (known as PACER Plus) we have supported a comprehensive trade pact in the Pacific.  PACER Plus will assist countries in the region to share in the benefits of increased trade and economic growth. Australian and New Zealand Governments have an important role to play in building capacity of key trade-supporting disciplines such as education and technical assistance to ensure a trade pact can deliver meaningful outcomes.

We have been operating in the Pacific for over 130 years, employ over 2000 staff and are the largest bank in the region, operating full service retail and commercial banking in 11 Pacific countries.

As we grow our operations in the Pacific we recognise the responsibility we have to contribute to the development of the banking sector and the economies of the region more broadly. 

‘Banking the Un-banked’ is delivered in partnership with the United Nations Development Program (UNDP) and is providing basic, affordable and reliable banking services to remote Pacific communities. 

Since launching the program in Fiji in late 2004 we have rolled out the program to a number of other Pacific countries, including Samoa, Tonga, American Samoa, Vanuatu and Solomon Islands. Around 75,000 previously un-banked people in these countries have now opened savings accounts. Regular savers can also taken advantage of our micro-loans program.

We are partnering with the World Bank to bring environmentally sustainable energy to villages and businesses in Pacific Island countries. As part of the program, ANZ will distribute $9.5 million of World Bank funding over the next five years to help local financial institutions provide affordable loans to rural communities for the purchase of renewable energy such as solar energy, hydro energy and biofuels (coconut oils). We will also participate in the program as a lender.

These initiatives are delivering improved social, economic and financial inclusion outcomes for our customers and the communities in which we operate. At the same time, they represent sustainable business opportunities which contribute to ANZ’s performance in the Pacific.

Read our submission on PACER Plus (PDF 36kB).

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Opes creditors approve settlement actions

Creditors of Opes Prime have approved a scheme of arrangement which is expected to return creditors 37 cents in the dollar. The agreed settlement totals approximately $253 million in cash and other assets and releases ANZ and Merrill Lynch from all existing and future claims of Opes Prime creditors.

ANZ remains committed to learning from the findings of the August 2008 Securities Lending Review, which CEO Mike Smith commissioned following the collapse of Opes Prime in March 2008.

This thorough, self-critical Review found that that there were a number of departures from ANZ’s policies in relation to ANZ’s Equity Finance business operations. The Review also identified some cultural and management deficiencies within the Equity Finance business, which sat within the Custodian Services unit, within the Institutional division of the bank.

Implementation of a number of actions identified by the Review committee have been undertaken and address the management, control and accountability issues identified in the Securities Lending Review.

ANZ has worked closely with the regulators to implement the remediation items identified in the Securities Lending Review and continues to keep them informed of developments.

Additionally, ANZ has renewed its focus on key values we perceive as integral to conducting business, including sensitivity to reputational concerns and overall strategy, individual accountability, strong risk management, and both the reality and the appearance of ethical decision making.

• Strengthening accountability and governance (see July 2009 edition)
• Federal Court of Australia Opes Prime judgement (PDF 1.7MB)
• Securities Lending Review - Information Pack (PDF 164kB)

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Bank funding guarantees

The Senate is reviewing the Government’s deposits and wholesale funding guarantees. The Guarantees have been necessary to maintain confidence in the financial system during the economic crisis. ANZ supports a withdrawal from these schemes, at the appropriate time, coordinated with other developed countries.

The guarantees were established in October 2008 and ANZ supported the Government’s decision. After the collapse of Lehman Brothers, for a time, global financial markets were effectively closed for financial institutions. The wholesale funding guarantee has facilitated access to global wholesale funding markets for Australian financial institutions.

Australian banks must pay to access the scheme. ANZ has paid $55.7 million to the Government to guarantee $2.2 billion of large deposits and $15.7 billion of wholesale funding.

While the price of wholesale funding remains elevated in comparison to pre-crisis prices, conditions in wholesale funding markets are improving. Provided this situation does not deteriorate, the guarantees should be removed in an orderly way, coordinated with similar actions in the major European and North American economies.

• Read our submission to the Senate Economics Committee inquiry into the Bank Funding Guarantees (PDF 44kB).

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Organic growth in China supports super-regional plans

ANZ aspires to be a leading foreign bank in China and our growth plan includes seeking local incorporation, opening additional branches and establishing a rural bank in western China. Contributing to our organic growth strategy in China we have opened a branch in Guangzhou to serve the growing banking needs of individual and business customers in the Pearl River Delta.

Speaking to a gathering of clients and industry leaders, CEO Asia Pacific, Alex Thursby said the new branch is a symbol of ANZ’s ambition and commitment to China.

“ANZ is one of the largest Australian investors in China and we are investing heavily to build our capabilities and network for our local customers,” he said.

We now have branches in the north, centre and south of mainland China, giving us a broad network to support customers in these key areas. We have announced plans to open a rural bank in Chongqing Municipality in western China which would contribute to the Chinese Government's plans for rural development.

Our plans for growth in China are a key part of our super-regional aspirations and complement our existing business including the recent acquisition – from the Royal Bank of Scotland - of retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, and the large corporate businesses in Taiwan, the Philippines and Vietnam.

• China expansion media release (PDF 72kB)
• Acquisition a stepping-stone

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This month's edition reports on our work towards a lower carbon economy, our focus on building accountability and good governance and our support of financial literacy.

June's edition reports on our support for customers in difficulty, new measures to support staff affected by offshoring and the development of the next phase of our approach to Corporate Responsibility.

Supporting customers in financial hardship