I am pleased to report that ANZ’s statutory profit after tax for the year ended 30 September 2012 was $5.7 billion, up 6%. This good performance reflected continued progress with our super regional strategy which saw growth across our key businesses in Australia, New Zealand and Asia Pacific, together with a renewed focus on cost management. The final dividend of 79 cents per share brings the total dividend for the year to 145 cents per share fully franked, an increase of 4%. Our capital position remains strong, placing ANZ among the world’s best capitalised banks and we remain one of only a small number of banks globally which have maintained an AA rating from all three credit ratings agencies.

Super Regional Strategy

Over the past five years we have had a consistent focus on creating the region’s best connected and most respected bank. 2012 has been another year of achievement. In Asia, we continued to invest. For example, in our subsidiary bank in China we increased capital to support growth. Greater China, including Hong Kong and Taiwan, is now ANZ’s largest market outside Australia and New Zealand. We also opened our first Malaysian branch in Labuan. In Australia and New Zealand, our largest markets, we also continued to invest in customer service and innovation, and in leveraging connectivity with our international network. This is increasingly a source of differentiation, particularly in Commercial and Institutional banking. At the same time, we have increased our focus on simplifying the bank and on containing cost growth. Alistair Currie was appointed to the role of Group Chief Operating Officer to deliver a more integrated approach to technology, shared services and operations. In New Zealand, we made significant progress with our simplification program, including our migration to one technology platform and a decision to move to a single brand.

Customers, Our People and the Community

Since the onset of the global financial crisis, the reputation of banks throughout the world has been challenged. Although Australian banks have remained strong throughout this period, we have also had to face up to community concerns about our industry and increase our efforts with customers and with the wider community. As we made structural changes to our business in 2012 to adjust to the more difficult operating environment, our leading position on retail customer satisfaction slipped in Australia but has since regained momentum. Although we have maintained strong customer satisfaction in New Zealand, management refocused their efforts on improving satisfaction in Australia. There was early recognition of our progress with ANZ receiving awards[1] as Bank of the Year, Mortgage Lender of the Year and Business Bank of the Year in 2012. We were also pleased to be recognised for our long-term commitment to building the money management skills and savings of disadvantaged groups, receiving two major awards at the MoneySmart Week Awards in Australia. Throughout 2012, we have continued to equip our people for high performance, continuing to support them to make ethically, socially and environmentally responsible decisions, while promoting their wellbeing. We have linked ANZ’s super regional strategy to our corporate responsibility framework and continued to work with stakeholders to guide our activities. This includes reviewing and improving our responsible lending practices which have been built into our training programs. ANZ was ranked the most sustainable bank globally in the 2012 Dow Jones Sustainability Index.

Outlook

The global economy is softening as we enter our 2013 financial year with many European economies contracting and the United States continuing to recover slowly. Although China’s economy is also in a managed slow-down we expect it will continue to grow at 7–8% in 2013. This will see Asia remain the best performing region in the world. In Australian and New Zealand consumer and business confidence remains weak and growth during 2013 is expected to be around 2.7% and 2.5% respectively. Although the year ahead looks challenging with headwinds in a number of areas, ANZ’s unique strategy and the momentum we have in adapting to the new environment for banks means we are well placed to deliver value to our shareholders, our customers and the community. Finally, on behalf of shareholders, I would like to acknowledge the commitment and dedication of our management team and of all our 48,000 staff who have worked so hard in 2012. My thanks also go to my fellow Directors for their commitment and support during the year.