We could never have forecast 2020, a year that started with devastating bushfires in Australia and was followed by waves of a terrible, global pandemic that continues to spread. We still cannot predict its course but we do remain confident we can deal with its impacts.

Our thoughts are with those who have suffered from these events. We need only look at some of the country towns impacted by bushfires or the empty city streets to know these crises have struck at the heart of our community.

We want our customers to know we will continue to do all we can to support them through the tough times. Fortunately we have never been in better shape to support all our stakeholders through what will be one of history’s periods of great volatility.

While the Chairman’s message has provided an overview of our financial performance, I would reiterate we were pleased with how the business performed in difficult trading conditions.

As a bank, we entered 2020 in robust condition. We have a strong balance sheet with record levels of capital and liquidity.

Time of crisis are when the best companies build for the future in a prudent and disciplined manner.

The work done over several years to simplify the bank means we now focus only on the things that matter, our people are more engaged than ever and we are able to quickly adapt to the challenges the future holds.

While COVID-19 has impacted many parts of our business, we have not sat idle. Times of crisis are when the best companies build for the future in a prudent and disciplined manner. We invested record levels to build a better bank for our customers and staff, while continuing to closely manage costs.

In Australia, we achieved strong growth in our targeted home loan segments with above system growth in the owner-occupier market, driven particularly by the refinancing market. Deposits remained strong as customers took a sensible approach to managing their household balance sheet. We also saw an accelerated shift away from the use of cash due to the pandemic and we introduced new processes to help customers move to online banking.

The work done over many years to simplify and refocus the Institutional business proved beneficial in a market defined by high levels of liquidity, low interest rates and geopolitical tensions. Increased volatility led to strong activity in Global Markets which again performed well and demonstrated the benefits of a diversified business. As Australia’s leading international bank, we remain well positioned to assist domestic companies doing business in Asia as the global economy improves.

COVID-19 appears contained in New Zealand and we remain well positioned to benefit from its subsequent economic recovery.

While it was a tough revenue environment, given low interest rates and a focus on reducing or simplifying fees, we have maintained market leadership in our targeted segments: home loans, deposits and KiwiSaver.

Given the critical role data, insights and automation will play over the coming years, particularly as we respond to the challenges of COVID-19 and the daily uncertainty that brings, we also made changes to the executive team with the addition of Emma Gray to the new role of Group Executive Data and Automation. This will be a critical role in the continued digital transformation of ANZ.

One of the most pleasing aspects of 2020 has been how our people have responded to the challenge. We were able to successfully move 95 per cent of our non-branch employees to working productively from home where they were able to support our customers at a time of significant stress. Employee engagement is at record levels. I’ve been amazed at their dedication and I’m proud to call them my colleagues.

Climate change

This year we have released an updated Climate Change Statement that outlines our approach and strengthened commitments in support of a global transition to net zero carbon emissions.

We understand the impact – positive and negative – our financing has on climate change. We have been working hard on making a meaningful difference while supporting long-standing customers who are making the transition to a low carbon future. Over the last five years, we have reduced our lending to thermal coal mining by almost 70 per cent and increased our direct lending to renewables by 63 per cent.

Our 2020 Climate Change Statement focuses on three main areas.

First, we will help our customers by encouraging them to identify climate risks and opportunities, create transition plans and report publicly on their progress.

Second, we will support the transition of industries to a low carbon future so they can help grow the economy. A key element for ANZ is we will no longer directly finance new assets across the thermal coal value chain and will exit all directly financed coal-fired power stations and thermal coal mines by 2030.

Thirdly, we will reduce our own impact by managing and reducing emissions from our operations. We will do this by accelerating our emission reductions by sourcing 100 per cent of the electricity needed for our business operations from renewables by 2025.

Finally, I would like to acknowledge again the terrific work of our 39,000 people across the world. From our service centres in Bangalore and Manila through to our contact centres in Australia and branches in New Zealand, they have all done a great job for customers in very difficult circumstances despite competing priorities over this long, arduous period.

Shayne Elliott, Chief Executive Officer