Anthony Healy (AH): ‘It’s obviously been a challenging few years around the world. We’ve had COVID and we’ve now got high interest rates, inflation and softer consumer demand. So it’s been tough for all businesses, particularly for SMEs that don’t necessarily have the resources of big companies. I’d be interested in your observations around businesses that have been successful, and businesses that haven’t thrived through that period. What do you think have been some of the characteristics of those that have thrived and those that haven’t thrived?’
“It’s been tough for businesses, particularly for SMEs that don’t necessarily have the resources of big companies.”
– Anthony Healy
Ross McEwan (RM): ‘We’ve got bankers in the room who have cradled customers through some of the most horrific times and some of the most amazing times in the last three years.
It started coming on in February 2020, and then by March, I think we’d lost 900,000 jobs in a month in Australia. And I said to the team, “I have no idea what’s coming next. So let’s just work on one very simple thought: that a good business before COVID will be a good business after, and we will support them.”
And it worked out to be absolutely brilliant, because pretty much all the businesses that came through COVID and got support, came out the back end in pretty good shape. And Anthony, this is where I think the industry is so wonderful: Because we gave the support as an entire industry. It wasn’t just us, it was everyone.
I think what’s happening at the moment is it’s getting tighter. It is actually getting tighter, it has to get tighter, to get inflation down. But I truly believe good businesses are going to flourish again, and they’re doing very well.
In banking, the industry is in really good shape. The banks are really well capitalised and have good liquidity. We’ve got really good regulators. And I think as long as we all stay very focused on customers and their needs, and having the tough decisions when there’s a problem, not shirking away from it, this industry will go from strength to strength.’
“There is resilience in this economy that you’re not seeing in other economies around the world.”
– Ross McEwan
There is resilience in this economy that you’re not seeing in other economies around the world. This is the luckiest country in the world.
The Australian economy is in pretty good shape, but it has to slow down. Therefore it feels more “crunchy”. It feels harder and individuals are struggling with interest rates up, cost of living up – everything’s up.
And we just need to get them through it, because in another nine months I think this economy will kick again.