Congratulations on those numbers. Can I start with a broader kind of macro question of course we had the RBA wrong footed
expectations yesterday with that 25 basis point hike. What is the start of the tightening cycle mean for your business. Does
it change your outlook at all for growth and for conditions. And what do you think the RBA is trying to signal here. Well
absolutely. It changes the outlook. I mean we've been through quite a significant pivot point let's not forget in Australia.
Essentially for 30 years we have had rates falling. These have been a few bumps along the way. And so this is quite a big
problem. We are now talking about a new world a world of inflation. What about customers and even lives through this
world. And that is an extraordinary number of Australian homeowners who have never had their home loan mortgage rate go
up. So it is a significant shift in the conditions. Now some of that is good for banks. And as a general observation you'd say
it's generally positive for margin outlooks for our business. But of course the candidate that will really be how will
customers behave while the depositors do. What will borrowers do. You know what small businesses do as they contemplate a more
uncertain. And a really different operating environment. Emma Chandra that question of what will consumers do is a big
one when it comes to loans growth and NZ has lagged competitors in that area is beefed up mortgage processing capabilities. But
has he kind of missed that window now that the tightening cycle has begun. No no I look it up. David Westin we wish that we had
had our act together a little bit better and processing. We didn't forecast the sort of boom in home loan applications over
the last year. But I don't want to make light of it. But if we think about it I'm not. So in this new world where rates are
rising and probably going to be rising pretty fast. I'm not so sure that missing a little bit of market share growth in the
last six to twelve months is such a bad thing. What we've really got you know we've got a large home loan book almost 280 billion
dollars. But a million homeowners really want to make sure that they're in the best possible shape to see it through the
exchange 70 percent of them are ahead on their repayments. They've got good cash balances. But as I said this is going to
be a new world. And I think we've got to focus on what we already have and a little bit of share loss. Not ideal but
that's not what's keeping me awake at night at the moment. So what is keeping you awake at the moment. Well what's keeping me
awake at the moment is really trying to understand and think through what the customers do. I mean I know that sounds
flippant but in many of our customers as the shit in Australia they've never lived through an inflationary period. So if you're
running a small business you're a homeowner you're a bureaucrat you know trading as sole trader or something new. And so we
don't really understand the behaviour. Are they going to want to save more. We've seen extraordinary levels of saving over Covid
period. Are they. What are they going to do. Are they going to put more money into saving because they're worried about the
future or are they going to start spending more. Because you know unemployment is really low at the same time.
There's lots of moving parts. But to me it really will come down to this consumer behaviour and how how are they going to go and
change in life. And that really impacts somebody like a bank. Because what we've seen over last year for example a massive
shift of people moving out of term deposits and putting money into call deposits because people wanted to have cash close at
hand because they're a little bit worried about the future. Well you know we don't know how that's going to change and we're
going to keep a really close eye on their consumer behaviour. So how do you hedge that when you don't know what consumers will do
next in order to make those decisions on how you allocate your resources to different parts of your operation. What are the
factors that are currently guiding your decisions. Well you know it's the only thing you can do in an environment like that is
stay on your toes like stay nimble you know make sure you're getting the best possible data in real time because we don't
know. So and that's what we've been investing in in terms of our foundations making sure we've got really the most important
thing. Jihye Lee such customer selection. I mean choosing the right customers to help our customers are well positioned and
customers who will do the right thing who have good character and experience which again the business side and then making
sure we have real time data to monitor what is going on. And we're fortunate today right. No it's not that long ago you would
maybe go to the AGM and take out a bunch of cash. So some we never knew what you did with it. But today in a digital world
where people are usually phones to pay for things or cards et cetera we know in real time what people are doing. So lottery
here at ANZ I can get real time data and know how are people spending today and how is it shifting and what's different today
literally from yesterday. And so to me it's gonna be that staying on top of the data and then having the agility as an
organisation to respond really quickly you know with pricing and then risk appetite and thinking about the customers we want to
do more with or less with Mark Gurman and a much more agile by. Your plans for capital deployment. You've got three billion
Aussie sitting there. You didn't follow when it comes to share buybacks the likes of the CPA. So what are your plans. Yeah look
we've been we lead the way in Australia in terms of capital management. We were the first to focus on simplification of the
bank and to exit a lot of non-cash assets. And that led to you know through buybacks over the last five or six years we've
given back five and a half billion dollars to shareholders and we've assessed and I think most prudent around capital
management. And we get it. And we are sitting on a little bit of an excess at the moment. But you know we David Westin the board
and we meet your strategy in a lot of time thinking about the best use of that
capital to generate returns. Right now we are looking at that point in the economy and thinking it's going to throw up a lot
of opportunities and we just want to be prepared for those opportunities while a little bit more thought before we make a
decision. So I can tell you it's front and center. And I also would remind people watching you know it's not normal for us to
announce capital management on the at the time of our results in fact all of the previous buybacks. It wasn't they were not
announced at the time of our results. So that's pretty pretty normal.
What's the thought process behind the separate entities the banking nonbank split. What advantage does that give you that
you can't already do at the moment. Yeah that's a great question. So as you know globally that's actually quite a normal
structure for banks. So JP Morgan or CBS and others have operated in that structure for quite some time in fact here in
Australia. Also Macquarie operate in a similar structure. It's really again goes to that idea of agility as we want to service
our customers in the future and help them find and buy it own a home or start and run a small business. Increasingly the way we
do that isn't just through taking deposits and lending money. It's the ancillary services that surround them. And a lot of
those services they're not they're not banking. And to have those services housed in a regulated bank Joel Weber frankly
just ties them up in knots and slows them right down. Yeah. So what we want to do is you know really free up our ability. So
we'll have it. We'll have an entity that's not bank regulated. It will be closely supervised but not bank regulated so that we
can really grow our services our mom banking services to our customers. You will have seen recently we bought a company here
in Australia from Cash Rewards. It's the leading cashback provider for it for shoppers. So people get out there you know
buying are using cards and even getting instant cashback. It's a great one point three Joel Weber million customers. That's not a
bank. And it's really inappropriate to have it sitting in an authorised deposit taking institution a regulator just like a
bank. So that's the sort of businesses that will make sense to sit in. The non banking are great and chain ANZ of course very
much committed to that net zero path. Any thoughts or insights into where we're at. When the sector needs to meet that 200
billion Aussie dollar sustainable lending target. Yeah. So we're really excited about this. Because it's the right thing to do.
And as Australia's New Zealand's largest institutional bank in particular we have a responsibility to really help our customers
through the transition. So this isn't about our footprint. We have one but and we will be net zero energy renewable 100 noble
by 2025. But it's really about the assistance we have for our customers. So it's a responsibility. Maybe it's a massive
opportunity for us. It really plays transit strengths. We're good at this. We're good at helping institutions raise capital
deploy capital whether that's in the short term or through long term projects. So you know transitioning to a new energy future
for example or helping customers you know unlock the value in hydrogen or lithium and or electric vehicles. That is what we
do. And so we're really excited about it. And we're well on the path to build that. We've already done that one billion dollars
in sustainable finance against our our target of 50 billion by 2025. So we're well on on the path where we're you know there's
a really big growing opportunity.