Personal report, a message from Brian Hartzer ANZ Personal MD Brian Hartzer

Brian Hartzer on very different front line staff

"We've built great staff engagement in our branches, and we have a fantastic team of people who serve our customers every day. They're passionate and empowered. The reaction of our staff in Innisfail in the aftermath of Cyclone Larry was magnificent. They truly went the extra mile.

The branch staff met and decided to open the branch, even though one of them had lost her own home and the branch had no electricity. Their dedication meant that ANZ was the first bank to reopen on the morning after the cyclone hit, and the first ATM up and running using a customer's generator for power. Innisfail branch provided a critical service to their local community, by working with the federal and state governments to provide cash grants to locals, regardless of whether or not they were existing ANZ customers.

Staff from all around the region pitched in to help and give their colleagues some relief. One staff member even bought an entire rack of bread from the Atherton bakery and drove it down to Innisfail so that it could be distributed to customers and their families.

ANZ staff across Australia held fundraisers to help their colleagues in Innisfail, to the point where the branch ended up having several thousand dollars in surplus funds to donate back to the community.

I don't think we would have had that reaction from our people if they didn't feel really good about where they work and were recognised for the important role they play in their community. It's the best example I've seen of staff engagement in action, and I'm proud to work with them."

We've built an engaged and highly motivated workforce, with the skills and know-how to provide outstanding customer service.

Our financial performance

($m) 2005 2006 %
Income 3,715 4,200 13%
Operating Expenses (1,890) (2,069) 9%
Profit before Provisions 1,825 2,131 17%
Provison1 (351) (341) (3%)
Tax & OEI (441) (534) 21%
Profit after Tax 1,033 1,256 22%
Cost to Income(CTI) 50.9% 49.3% -
Staff (FTE) 12,081 12,795 6%

1 Provision for Credit Impairment

Personal has had an outstanding year, with revenue growth of 13% driving earnings growth of 22%. Balance sheet growth was strong, with lending up 12% and deposits up 11%. Giving customers a good reason to bank with us other than simply price has helped us maintain stable margins over the year.

All Personal businesses recorded double-digit earnings growth, with the highlights being Pacific (up 67%), Investments and Insurance (up 48%), Consumer Finance (up 25%), and Mortgages (up 21%).

Expenses were up 9%, as we continued our investment in future growth, with the addition of 714 full-time equivalent staff, 25 new branches, and 330 ATMs over the year.

Credit costs were relatively flat during the year.