The new buyback has launched as part of ANZ’s capital management plan, with both chair Paul O’Sullivan and chief executive Shayne Elliott insisting the bank is in a strong position to return excess capital to shareholders despite underlying COVID pressures.
“Despite the very real challenges being experienced by many of our customers, we have the financial strength to continue to support our customers, while also returning surplus capital to shareholders,” Mr O’Sullivan said.
“After reviewing options, we consider an on-market buyback to be the most prudent, fairest and flexible method to return capital in the current environment.”
Mr Elliott added the bank is “well placed” to fulfil customer needs while still actively managing capital.
“Just taking into consideration the ongoing pressures in some parts of the economy due to COVID, including the current lockdowns in parts of the country, the strength of our balance sheet and ongoing financial performance means we are in a position to return a modest amount of surplus capital to shareholders through a buyback of shares on-market,” he said.
The buyback is likely to begin in August.
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Sarah Simpkins is the news editor across Mortgage Business and The Adviser.
Previously, she reported on banking, financial services and wealth for InvestorDaily and ifa.