“He said he hates the industry. He is a lifetime banker and he has done this before,” Wilson said.
“The consulting industry creates limited value for owners other than in special circumstances where you need to corral people quickly. Ninety-nine per cent of the time you’re better off doing it yourself.”
ANZ shares performed better than other big banks on Tuesday, as investors digested Matos’ announced overhaul for the underperforming bank, including $800 million in cost cuts by 2026, further investment in bankers to write mortgages and business loans, and a speedier integration of Suncorp Bank.
The bank also wants to target the “mass affluent” segment, as well as expanding in business lending, with Matos targeting a return on tangible equity of 12 per cent by 2028 and 13 per cent by 2030, compared with 10.3 per cent in 2024.
Bank watchers on Tuesday said that achieving Matos’ longer-term financial goals would be tough.
Macquarie analysts said it was “improbable” that ANZ would hit its long-term target for its cost-to-income ratio or its target for return on tangible equity, though even partially achieving its cost targets could provide “sound upside.”
“ANZ is looking to achieve what no other bank has done: materially outperform peers on costs and then revenue,” Macquarie said.
Barrenjoey’s Jonathan Mott said providing cost-to-income ratio and return on tangible equity targets for 2028 and 2030 was “courageous.”
“Quite simply, history shows that Australian banks can either take costs out or grow revenue, but never both,” Mott said.
Morgan Stanley’s Richard Wiles backed Matos’ communication and willingness to name targets and timeframes, but said it would be difficult for ANZ to outperform the market in retail and business banking.
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“We’re not convinced that ANZ can accelerate revenue growth and outperform the market during the ‘second phase’ of its 2030 strategy,” Wiles said.
The changes outlined by Matos follow his announcement last month that the bank planned to cut 3500 jobs, as well as 1000 contractors working in the bank.
The Finance Sector Union, which held a rally of staff outside ANZ’s Melbourne headquarters on Tuesday, has pushed ANZ to provide details about which areas are at risk of job cuts, as well as calling for no forced redundancies.
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