Australia's ANZ fined $160m over bond deal, client violations

ANZ Group agreed to pay A$240 million ($159.5 million), the Australian corporate regulator's largest-ever penalties against a single entity, over systemic failures ranging from acting "unconscionably" in a government bond deal to charging dead customers.

- SCOTT MURDOCH CHRISTINE CHEN

The penalties announced yesterday are a troubling milestone for Australia's fourth-largest bank, which last week announced 3,500 job cuts as new CEO Nuno Matos looks to improve profitability at a lender that already is required to hold more capital in reserve than its peers due in part to fallout from the bond deal.

"Time and time again ANZ betrayed the trust of Australians," Australian Securities and Investments Commission (ASIC) Chair Joe Longo said. "As far as the unconscionable conduct is concerned, it was clearly grubby."

Including yesterday's announcement, ASIC has brought 11 civil penalty proceedings against ANZ since 2016, with total penalties exceeding A$310 million. ANZ has admitted allegations in each case, according to ASIC.

ANZ Chair Paul O'Sullivan said the bank must make a significant change in the way it operates.

"In reaching this settlement we are acknowledging that we let our customers down and I apologise unreservedly," he told analysts and reporters.

ANZ shares closed 0.6% lower yesterday, while the benchmark S&P/ASX200 was down 0.13%.