ANZ (ASX:ANZ) CEOs miss out on bonuses, profits slump 14 per cent on charges for job cuts, fines

The loss of market share in home loans comes as analysts generally support Matos’ action to cut costs, while also saying ANZ will find it difficult to meet the ambitious financial targets Matos has set for later this decade.

UBS analyst John Storey said ANZ’s explanation for a loss of market share in mortgages made sense but also raised questions about the difficulties ANZ would face in raising revenue as it cut back on business.

“Ultimately I think ANZ is a little bit more inward focused. You can see they’re already growing under the system,” Storey said. “It’s pretty clear that they’ve lost share in both commercial, commercial and retail over the last four months.”

As well as publishing its results on Monday, ANZ also announced major cuts to bonuses in response to issues with managing “non-financial risk”.

Loading

ANZ’s annual report said neither Elliott nor his successor Matos received a short-term bonus for 2025, and the bank also canceled incentives that Elliott was due to receive.

ANZ’s board took action and also decided not to pay short-term bonuses to its Australia-based senior executives after ANZ agreed to a $240 million penalty to settle four separate cases brought by the corporate watchdog earlier this year. In doing so, he admitted unconscionable conduct in a major government bond deal, misreporting of trading data and abuses affecting approximately 65,000 customers.

Independent non-executive director Holly Kramer, who chairs ANZ’s people and culture committee, said the benefits granted to Elliott and other executives would be forfeited in late 2025 “to ensure that the overall outcomes are appropriate and proportionate”.

He said the board also lost its 2026 shares by walking Elliott and former Australian retail chief Maile Carnegie. The report stated that Carnegie missed out on a $4.4 million bonus.

“The board considers major cuts to be indicative of a strong culture of accountability and is committed to continuing to clearly link compensation outcomes to performance,” Kramer said.

Loading

Monday’s results, the bank’s first under Matos, showed profits were hit by $1.1 billion in previously announced key items, including restructuring charges from mass layoffs and a record $240 million fine earlier this year.

While the bank stated that its profits were flat for the year to September 30, excluding significant items, Matos reiterated that “action is needed” to improve the bank’s financial returns and catch up with its competitors.

“Looking at our four major divisions, corporate and New Zealand have consistently performed well, but Australia retail and commercial bank and private bank have underperformed,” Matos said.

ANZ kept its final dividend unchanged at 83¢, as Matos pointed out at the last investor day.

The Business Briefing newsletter delivers big stories, exclusive news and expert insights. Sign up to receive it every weekday morning.