ANZ Group halts share buyback, redirects funds to strategic revamp

Core Viewpoint - ANZ Group has decided to halt its A$800m ($517.6m) share buyback program to focus on a comprehensive business strategy revamp, aiming to maintain dividends while implementing cost-saving measures and improving market competitiveness [1] Group 1: Cost-Saving Measures - ANZ plans to achieve A$800m in pre-tax cost savings during the current financial year through job reductions, internal restructuring, and exiting non-core businesses like Cashrewards [2] - The bank has revised its cost savings forecast from the acquisition of Suncorp Bank to A$500m, doubling its previous expectations [2] Group 2: Strategic Goals - ANZ aims for a 12% return on tangible equity by 2028, up from 10.3% last year, with aspirations to reach 13% by 2030 [3] - The bank plans to increase its mortgage and business banking staff by up to 50% in each division to regain market share [3] Group 3: Business Development - ANZ intends to reduce reliance on mortgage brokers and directly issue more loans to boost home lending revenue [4] - The Business & Private Bank division is expected to see a nearly 50% increase in its banking team, supported by a new Commercial Bankers Academy [4] Group 4: Market Expansion - ANZ is enhancing services for the middle-market segment with Transactive Global and introducing ANZ Plus for small business customers [5] - The bank sees growth potential in its Private Bank, currently serving 17,500 customers, and plans to expand its relationship manager teams [5] Group 5: Investment Focus - Continued investment in Transaction Banking and Markets platforms will focus on payments, market flow products, and cash management in New Zealand and Australia, with plans to extend these capabilities internationally [6] - ANZ announced a reduction of 3,500 jobs, incurring a cost of A$560m, and faced a A$240m penalty for regulatory breaches [6]