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CEO statement - Corporate Responsibility
CEO statement
The global economy and the banking sector in particular have faced the most serious financial crises of our time.
While the economies of our region and major banks have been more resilient than many of our Northern Hemisphere counterparts, we have not been immune to the ramifications of the global financial crisis.
ANZ has proven to be strong and stable in this environment - one of 15 AA rated banks remaining in the world.
However, we are now living in a 'new reality' - the money that banks borrow to lend to their customers is more expensive and difficult to source, debt and equity markets are volatile and this is flowing through to the real economy where people are spending less and confidence in banks has been eroded.
ANZ's response to the global financial crisis
Our first responsibility is to remain profitable for our shareholders and help our business and retail customers adjust to the changing economic conditions. We took action earlier this year to position ANZ for this new environment by increasing capital, strengthening the balance sheet and improving liquidity.
We also commenced a major restructure to improve our customer focus, create clearer accountability and stronger management and to ensure we are as efficient as possible in anticipation of the more difficult economic environment ahead. This restructure, combined with the transfer of some technology and operations roles to our team in Bangalore, has resulted in job losses at all levels of the organisation. Changes such as these are never easy, however we have been upfront with our employees and key stakeholders and provided those directly impacted with information and professional support to help them manage through this process.
Additional challenges
The year also held some unique challenges for ANZ requiring us to translate commitments to responsible business practice into business reality.
We provided an open and transparent account of issues related to ANZ's securities lending business and our involvement with broking firm clients. The management, control and accountability issues identified in the report were addressed through a 13-point remediation plan.
Our potential financing of a controversial pulp mill involved listening and responding to the full range of interested parties, from our employees and retail customers to environmental and community non-government organisations.
New beginnings
Looking forward, while coordinated action by governments, regulators and the banking sector has restored some stability to the international financial system, global market conditions will remain difficult in 2009.
The underlying strength in our business and our strategic focus on Asia, however, provide the foundation to manage through this uncertainty and to continue to succeed.
In many ways, this is an opportunity for a new beginning for ANZ when our commitment to being a responsible, sustainable business is more important than ever. In fact, I believe it will be integral to achieving the ambitious goals we have set ourselves in the coming years.
Our CR goals for 2009 are aligned to three core themes:
- Responsible products, services and decisions. Our customers are looking to us for stability and we will respond by providing simple, uncomplicated products and services tailored to their needs. We will also strengthen our systems and capabilities for making business decisions that take into account economic, social and environmental issues and opportunities.
- Sustainable Development. As we set our sights on becoming a major financial services institution in our region, we are identifying new opportunities to contribute to economically, socially and environmentally responsible development.
- Social and financial inclusion. We are strengthening our commitment to improving the social and financial inclusion of disadvantaged and under-represented groups in our community. This involves building a diverse and inclusive global workforce that represents the communities we serve; increasing the reach and impact of our flagship financial literacy and inclusion programs; and developing practical initiatives to improve the accessibility of our products and services for women, mature customers, people who have relocated from another country, Indigenous Australians and people with disability.
As always, I thank you for your support and welcome your ideas and input.
Michael Smith
Chief Executive Officer
© Australia and New Zealand Banking Group Limited (ANZ) 2009 ABN 11 005 357 522. ANZ's colour blue is a trade mark of ANZ.