ANZ plans to cut 3,500 staff over next year on CEO revamp
The bank is expected to incur a restructuring charge of about A$560 million before tax in the second half of this year
The bank is expected to incur a restructuring charge of about A$560 million (S$474 million) before tax in the second half of this year.
“My ambition is for ANZ to be the best bank for our customers while ensuring we sustainably meet the performance expected over the long-term,” Matos said in a statement. “We know this will be difficult news for some of our staff.”
Matos, just four months into his role leading the Melbourne-based lender, is orchestrating a turnaround strategy aimed at winning back trust from regulators at the same time as assuaging investors’ concerns. He’s told staff to stop work that is not a priority and has pledged to improve the bank’s culture and risk management.
Matos, a former HSBC Holdings banker who forged a reputation for fixing problems, was forced to apologise last month after a botched communication of a redundancy plan. The firm last week began cutting so-called middle- and back-office jobs within its institutional banking division, according to sources familiar with the matter.
Matos took over from Shayne Elliott in May, the former CEO who was plagued by regulatory inquiries during his final year in charge. The banking regulator has slapped additional capital requirements on the firm due to risk management shortcomings and the Australian Securities and Investments Commission is examining ANZ’s role in the sale of government bonds.
Since Matos arrived, several senior people have left the firm, including ex-retail chief Maile Carnegie and tech boss Gerard Florian. Les Vance started at the bank last week reporting directly to Matos, responsible for strengthening non-financial risk management and culture in a consistent way across the bank.
ANZ is also revamping its structure of senior managers, creating separate chief risk officers for its retail and commercial divisions as well as the institutional bank’s chief risk role. All three of those positions report to the group-wide risk head, Kevin Corbally.
ANZ’s share price is up 15 per cent year-to-date, outperforming a sub-gauge of Australian banking stocks. BLOOMBERG
Share with us your feedback on BT's products and services
