‘We have not consistently lived up to the expectations of our customers,’ Matos tells shareholders
ANZ’s record $240 million penalty for misconduct in its government and customer dealing has been given a $10 million top up following a Federal Court determination.
ANZ received the penalty in September after admitting to a series of breaches, including misreporting bond trading data to the Australian government, failing to address customer hardship notices, not paying promised interest to customers, and charging fees to deceased customers without timely refunds.
“The failings outlined are simply not good enough and they reinforce the case for change,” ANZ chief executive Nuno Matos (pictured) said at the time. “It is my expectation that we see measurable improvements across the bank to better protect and care for our customers and to create a more sustainable business.
“Unfortunately, some of our failings occurred when our customers were at their most vulnerable. For this, we are deeply sorry, and we are making changes to better support our customers when they need us most.”
In upping the penalty to $250 million, Justice Jonathan Beach said aspected of the fine handed down by the Australian Securities and Investment Commission (ASIC) were “on the light side”, particularly in regards to reporting failures.
Matos, who took over as chief executive this May, has sought to draw a line in the sand following a tumultuous time for the Big Four bank.
In an address to shareholders this week, he reiterated his four-point ‘ANZ 2030’ strategy, which includes a large-scale simplification of the bank’s organisational structures and a renewed emphasis on proprietary mortgage lending.
“Uplifting our non-financial risk management is also a key priority both now and into the future,” Matos told shareholders. “A significant amount of work is already underway to support the business and cultural transformation, which delivers a better-run bank for our customers. I recognise that as CEO, I am ultimately accountable for making sure we get this right.”
He admitted that, “despite our good intentions, we have not consistently lived up to the expectations of our customers across all of our businesses”.
