The CEO of Australia and New Zealand Banking Group (ANZ) appeared before the House of Representatives Standing Committee on Economics to address recent regulatory issues and outline the bank's strategy for the coming years.
The CEO, who joined ANZ in May, acknowledged that while Australia remains a stable economy with significant opportunities, the bank has not always met expected standards. "That standard is clear: we must put those we serve at the centre of everything we do," he said. He admitted that ANZ had fallen short of these expectations in several instances.
In April, ANZ entered a court enforceable undertaking with the Australian Prudential Regulation Authority (APRA) concerning its management of non-financial risk. The CEO described this as being about how the bank cares for its customers. In September, both ASIC and ANZ made a submission to the Federal Court to resolve issues related to its Markets business and Australian Retail business. These incidents involved failures in non-financial risk management, which were described as "serious and unacceptable."
"Some of them occurred when our customers were at their most vulnerable – facing hardship, bereavement, or relying on us to act with integrity," he stated. The CEO also referenced shortcomings in implementing lessons from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
"As CEO, allow me to be direct – the bank fell short of what is expected of us and, for that, I offer an unreserved apology," he said. He confirmed that executives have been held accountable under APRA’s CPS511 regulation.
The CEO outlined steps underway to address these issues. Since his appointment six months ago, he has overseen changes including appointing new leadership focused on reshaping risk management practices. APRA recently approved ANZ's plan to address root causes identified in previous reviews. "We will address them through a comprehensive program of work over the next three years," he said.
An independent reviewer will oversee progress toward these goals for transparency.
He also discussed “ANZ 2030,” a strategic update prioritizing customer service and improved risk management over five years. As part of simplifying operations—given overlapping platforms like Suncorp Bank, ANZ Classic, and ANZ Plus—the bank will accelerate integration efforts so Suncorp customers join ANZ by June 2027.
However, this simplification comes with workforce reductions: "One of those is that we need let go of around 3,500 employees and 1,000 contractors." He noted ongoing collaboration with the Financial Services Union to support affected staff.
The CEO emphasized limited impact on frontline roles such as branches and contact centers; instead, there are plans to increase home lenders in branches by up to 50% over five years as well as nearly double small business bankers during this period.
Additional resources will be directed toward improving non-financial risk management capabilities. The bank will also fulfill government obligations regarding its acquisition of Suncorp Bank.
"I welcome your questions on how our customers are doing and anything else you would like to address," he concluded.