ANZ Group Holdings has declined to respond to a newspaper report that the banking regulator has criticised the management of risks in ANZ’s financial markets business and threatened to impose an additional $250 million capital charge on the bank.
“We don’t have any comment on that,” an ANZ (ASX: ANZ) spokesman told Azzet.
The Australian reported the Australian Prudential Regulation Authority (APRA) had told ANZ it could not justify the removal of a $500 million capital penalty imposed on the Big Four Bank in 2019 because it had failed to improved risk management.
Citing documents obtained under Freedom of Information (FOI), the newspaper said APRA had written to ANZ to express its worries about the bank’s handling of problems in its markets business and its failure to address issues despite repeated warnings.
The letter revealed APRA’s “long-standing concerns” with ANZ’s non-financial risk management and risk culture and included the warning the bank would be hit with an additional $250 million capital charge in the wake of publicity about a bond deal.
“The letter was released under an FOI provision and we have no further comment,” an APRA spokesman said.
ANZ is being investigated by corporate regulator the Australian Securities and Investments Commission (ASIC) over its role as lead manager of an Australian Government bond issue in 2023.
In 2019 APRA required ANZ to hold an extra $500 million in capital as a result of its failure to meet prudential obligations, particularly around risk governance, as part of a broader review of governance and risk management in financial institutions.
The publication of the report comes soon after ANZ announced that HSBC Holdings executive Nuno Matos would replace Shayne Elliott as Chief Executive Officer on 3 July 2025.
At 10.40am (AEDT) ANZ shares were trading at $29.575, up 9.4 cents (0.3%), after trading between $29.51 and $29.69 and capitalising the bank at $87.8 billion.
