On Friday, UBS reaffirmed its Neutral stance on Australia & New Zealand Banking Group (OTC:ANZGY) (ANZ:AU) (OTC: ANZBY), maintaining a price target of AUD34.00. The commentary from the analyst focused on several key points discussed during the bank's annual general meeting (AGM). Among the highlighted issues were the market and non-financial risks ANZ faced over the year, which led to an increase in operational risk-weighted assets (RWA) by approximately $250 million.
The AGM also shed light on the actions taken by the bank in response to these challenges, including significant cuts in variable compensation for senior management, ranging from around 50-60%. This move reflects the bank's acknowledgment of responsibility and the need for accountability at the upper echelons of its corporate structure.
In addition to financial matters, the meeting addressed succession planning and the decision to appoint an external candidate, Nuno Matos, as a key executive, despite his lack of regional experience in Australia and New Zealand. The bank's strategic initiatives, such as ANZ Plus and the integration of Suncorp Bank, were also topics of discussion by the Chair and CEO during their speeches at the AGM.
Looking forward, ANZ is expected to provide a trading update for the first quarter in the upcoming week of February 10, 2025. This announcement is anticipated to serve as the next significant indicator of the bank's performance and strategic direction.
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