By Scott Murdoch and Himanshi Akhand
SYDNEY (Reuters) -Australian lender ANZ Group said on Monday it had appointed former HSBC executive Nuno Matos as its next CEO, replacing Shayne Elliott, who is set to retire in July 2025 after nine years in the role.
The Melbourne-based bank, Australia's No. 4 lender by mortgages, has been the worst share price performer among its "Big Four" peers this year as it grapples with the fallout from a bond trading scandal that has prompted regulatory investigations.
ANZ shares fell as much as 3.2% to A$30.165 by 0025 GMT after the appointment was announced on Monday, hitting their lowest level since Oct. 11, while the benchmark index was last down 0.4%.
Matos, 57, has 30 years of experience across retail, commercial and wholesale banking and was most recently the CEO of Wealth and Personal Banking at HSBC before leaving the bank in August shortly after missing out on the top job.
Hong-Kong-based Matos has served in several of HSBC's largest regions, including Europe and Latin America, and was among the internal candidates vying to take over as CEO of Europe's biggest bank, but Chief Financial Officer Georges Elhedery won the role in July.
"When Nuno was available as a result of developments at HSBC, we thought it was important we move quickly and effectively to take advantage of that," ANZ Chairman Paul O'Sullivan told reporters.
"(Matos) has an excellent track record of delivering change and transformation and bank integrations, which is an important area for ANZ," O'Sullivan added.
ANZ, which is working to integrate its recent A$4.5 billion ($2.87 billion) acquisition of Suncorp Bank, unveiled an organisational overhaul in October to streamline operations and enhance data analytics as it seeks to address regulatory concerns surrounding its oversight of some operations.
ANZ's institutional banking boss Mark Whelan was seen as a potential successor to Elliott, according to local media reports. However, that division is being investigated by regulators over its handling of government bond auctions.
The lender overstated the value of government bonds that it traded by more than A$50 billion over a one-year period, according to local media reports. ANZ has not confirmed that figure.
Elliott and Whelan told staff in a July email that the bank hired external lawyers to help the investigations into the claims and improve workplace culture at the operations headed by Whelan.
ANZ also has reviewed its non-financial risk management practices after the misconduct allegations, which prompted the prudential watchdog in August to increase the amount of spare cash the bank must keep on hand by A$250 million.
"We like the option the ANZ board has gone with to appoint an external candidate as CEO of ANZ," said UBS banking analyst John Storey. "This brings a fresh perspective and a clean slate for the successor to make the necessary changes to the group's operating model."
Including ANZ's management change, three of Australia's "Big Four" banks will have announced the appointment of new CEOs this year.
Anthony Miller is set to succeed Peter King as Westpac's CEO next week, while Andrew Irvine took over the top job at National Australia Bank (OTC:NABZY) in April.
($1 = 1.5657 Australian dollars)