ANZ has announced its intention to repurchase up to $1.5 billion of shares on the market as part of its capital management strategy. This decision comes amid ongoing economic challenges due to COVID-19, including lockdowns in certain regions.
Paul O’Sullivan, ANZ Chairman, stated, "Despite the very real challenges being experienced by many of our customers, we have the financial strength to continue to support our customers, while also returning surplus capital to shareholders. After reviewing options, we consider an on-market buy-back to be the most prudent, fairest and flexible method to return capital in the current environment."
O'Sullivan added that while future capital returns might be possible, the focus remains on achieving balanced and prudent outcomes for all stakeholders.
Shayne Elliott, ANZ Chief Executive Officer, commented on the bank's position amidst economic pressures: "After taking into consideration the ongoing pressures in some parts of the economy due to COVID, including the current lockdowns in parts of the country, the strength of our balance sheet and ongoing financial performance means we are in a position to return a modest amount of surplus capital to shareholders through a buy-back of shares on-market."
Elliott emphasized ANZ's readiness to support customers during these challenging times: "Just as we supported our customers through previous lockdowns we stand ready and able to provide assistance to those that need it. The strength of our business means we are well placed to fulfil needs of our customers and the broader community while still actively managing our capital."
The bank reported Common Equity Tier 1 (CET1) ratios for Level 2 and Level 1 at 12.4% and 12.2% respectively as of March 31, 2021. These figures exceed APRA’s strong capital requirement threshold of 10.5%. The planned share buy-back is expected to reduce ANZ’s CET1 ratio by approximately 35 basis points.
Share purchases are anticipated to commence in August 2021. Retail shareholders seeking further information can contact Computershare at 1800 11 33 99 or +613 9415 4010.