ANZ Group Halts $520 Million Share Buyback Amid Strategic Overhaul Under New CEO Nuno Matos

Australia’s ANZ Group has announced it will halt the remaining A$800 million ($520 million) portion of its share buyback program as newly appointed CEO Nuno Matos focuses on conserving cash and reshaping the bank’s growth strategy. Despite the suspension, ANZ confirmed it will maintain its dividend payout, signaling confidence in its financial stability.

The bank also unveiled a sweeping cost-saving initiative targeting A$800 million in pre-tax reductions this financial year. These savings will stem from previously announced job cuts, organizational restructures, and divestments from non-core operations, including its online cashback platform, Cashrewards. The move underscores ANZ’s strategic pivot toward operational efficiency and capital preservation.

During Monday’s strategy briefing, ANZ revealed plans to expand its mortgage and business banking teams by up to 50% to regain market share lost to its major competitors. The bank aims to lessen its reliance on mortgage brokers and instead boost direct lending to increase profitability in home loans. This customer-centric strategy aligns with ANZ’s broader goal of improving loan margins and strengthening its retail banking presence.

Despite a cautious investor response—ANZ shares dipped 0.3% while the S&P/ASX200 fell 0.6%—the stock has rallied nearly 20% since Matos took over on June 1. Year-to-date, ANZ shares are up 24.1%, outperforming rivals Commonwealth Bank, NAB, and Westpac.

Last month, ANZ announced 3,500 job cuts at a one-off cost of A$560 million and agreed to pay A$240 million in penalties for regulatory breaches. The bank expects its final dividend to match its half-year payout and will offer a 1.5% discount on its next two dividend reinvestment plans. The A$2 billion share buyback initiated in May 2024 had reached A$1.2 billion before its cancellation.