ANZ halts share buyback to fund strategy overhaul, keeps dividend
Australia’s ANZ Banking Group will halt the remaining A$800 million ($520 million) of its planned A$2 billion share buyback while maintaining its dividend, as CEO Nuno Matos pursues a strategy to simplify the bank, boost cash reserves, and regain market share.
The bank also announced plans for A$800 million in pre-tax cost savings this financial year, driven by earlier job cuts, team restructuring, and the exit from non-core businesses, including the online shopping platform Cashrewards. Savings from ANZ’s 2024 Suncorp acquisition are now expected to double to A$500 million annually, News.Az reports, citing Reuters.
“The opportunities to rationalise the company in the first year are so obvious,” Matos said, emphasizing a focus on non-financial risk management and customer-centric operations.
ANZ aims for a 12% return on tangible equity by 2028, up from 10.3% in the prior financial year, and 13% by 2030. Shares jumped 3.3% following the announcement, extending a 24% gain since Matos took over in May, outperforming its Big Four peers.
Matos plans to expand mortgage and business banker numbers by up to 50% per division, reduce reliance on brokers, and grow direct home loan lending. ANZ currently holds a 13.5% mortgage market share, trailing rivals National Australia Bank (14%), Westpac (21%), and Commonwealth Bank (25%).
The share buyback, initially launched in May 2024, had completed about A$1.2 billion before being cancelled.
The overhaul comes amid regulatory scrutiny and past scandals, including a 2023 bond trading scandal and mischarging thousands of customers, resulting in a A$240 million penalty.
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