ANZ boss apologises for 3500 job cuts amid $240m misconduct fine

Australian manufacturing could be under threat as the banking sector could struggle to finance it due to the high cost of energy.

The warning emerged during parliamentary questioning where an ANZ executive confirmed that energy costs were a key consideration when the bank assesses lending to manufacturing businesses, adding further pressures to the sector.

During a House of Representatives Standing Committee on Economics hearing, Liberal Party member for Casey, Aaron Violi, asked ANZ if they could still lend money to Australian manufacturing businesses, despite the high cost of energy.

In response, ANZ chief executive Nuno Matos said the bank looks at many factors when it comes to financing any business.

“It is expected for a bank of our size and our complexity to take into account all the factors when considering where we apply the money we receive from our depositors,” Mr Matos said.

“By definition, we take into account the sustainability of a manufacturing company, including how dependent they are from energy and sources that are expensive which could make them unprofitable.”

However, he stopped short of saying ANZ had stopped funding manufacturing businesses.

“If you are asking us if we are restricting credit because of that factor, I don’t have data to give you today”

Mr Violi’s comments follow the country’s largest steelmaker, BlueScope, saying high energy prices including on gas could force local manufacturers to leave Australia.

BlueScope Steel urged the federal government to take action on installing a reservation scheme to ensure supplies for local industry.

Deputy chair Simon Kennedy further quizzed Mr Matos about what was driving up the costs of energy, specifically if it was a lack of investment in gas.

In response, Mr Matos said any restrictions on the supply of energy, including from gas, would by definition “increase the cost of capital” and lead to “higher costs of the end product” for users.

Multi-bank hubs the way to save regional banking

Mr Matos said Australia needed to establish “multi-bank hubs” to stop the collapse of rural bank branches across the country.

During the standing committee the ANZ boss said “access to basic banking services in all Australia is crucial”.

He called a multi-bank hub a sustainable solution to the problem.

“We acknowledge how important it is to deliver basic service to Australians in remote areas, and will continue to comply with all our obligations,” he says.

“Solutions like remote ATMs should be further explored. Solutions like banking hubs, which basically are multi bank branches, should be explored.”

The big-four banks have agreed on a moratorium on bank closures until mid-2027, while Westpac committed to extending this through until 2030.

No bonus as staff get fired

Mr Matos has apologised to staff who have lost their jobs, saying it is not “something he is proud of doing”.

Committee chair Ed Husic suggested the cutting of 3500 staff members was a result of the bank’s government bonds scandal and mishandling of retail customers.

In September, ANZ announced plans to cut 3500 staff and 1000 contractors – or almost 10 per cent of jobs – over the next 12 months in an effort to “simplify the bank”.

Staff will depart the business by September 2026.

Mr Husic said there was an uncomfortable perception that while 3500 staff members would lose their jobs, the executive team simply “didn’t get a bonus”.

Mr Matos said most of the staff who were responsible for ANZ’s previous issues had left the bank.

“Many of the executives are not in the company anymore …. Roughly half of our senior team is not with us anymore,” he replied.

“That is one of the most severe demonstrations of accountability, but I see your point. “Letting go 3500 people is not something I am proud of or would like to do, it is not something a human being likes to do.”

Mortgage business not what it used to be

Mr Matos said mortgages were one of the least profitable parts of the bank’s business, saying the money made on home loans is not what it was 15 years ago.

He said the bank today made about three times less than it did in previous decades.

He was pressed further by deputy chair Simon Kennedy, who claimed the average Aussie paid back $200,000 across their lifetime in “profits to the bank”.

Mr Matos, like Commonwealth Bank boss Matt Comyn and Westpac chief executive Anthony Miller, who faced the music on Tuesday, said there was a difference between profits and profitability.

Instead, Mr Matos said small businesses were the “hottest part of the market”.

ANZ apologises for misconduct

Mr Matos apologised for the bank’s previous failures that led to a record $240m fine.

The bank was ordered to pay up for widespread misconduct after ASIC found it mishandled a bond sale, potentially costing the federal government millions, as well as misconduct that impacted 65,000 retail customers.

The bank agreed to the penalty – the largest in regulatory history – although the Federal Court still needs to approve it.

In his opening remarks, Mr Matos made an unreserved apology as he talked about his role in reshaping the bank.

“The bank fell short of what is expected of us and for that I offer an apology,” Mr Matos said.

“We have appointed the right leadership to reshape the base and I personally oversee our actions on non-financial risks to ensure progress drives accountability and removes roadblocks.”

In his opening question, Mr Husic asked if ANZ was able to “take advantage of a national government”, what assurances should ordinary customers have they won’t do the same thing to them.

“Our shortcomings are unacceptable,” Mr Matos replied.

“It was very important to me and to us to understand why this happened and there has been a lot of work done on it by us.”

Mr Matos said it would take years, but the bank was committed to improving its culture and governance.

Major bank chiefs grilled

The bosses of Australia’s biggest banks are facing a parliamentary grilling as the government takes aim at interest rates, fees and scam protections.

Following Tuesday’s appearance from Commonwealth Bank and Westpac, Mr Matos and NAB chief executive Andrew Irvine are facing the music today.

More to come