Ex-HSBC banker Nuno Matos to head Australia's ANZ; Banco BPM ...

Nuno Matos, former head of HSBC’s wealth and personal banking business, will become ANZ’s chief executive next July, succeeding Shayne Elliott after nine years in the role, the Australian bank announced on Monday. 

Matos, who was previously considered as a leading candidate for the chief executive role at HSBC, joins ANZ at a critical juncture. The bank is under a regulatory investigation for alleged bond price rigging and internal misconduct, including incidents of drunken behaviour among trading staff. 

These challenges come as ANZ continues its strategic retreat from international markets to focus on domestic growth, bolstered by its A$4.9bn ($3.2bn) acquisition of Suncorp Bank, first announced in 2022 and representing the largest Australian banking sector consolidation since 2008. Matos will be responsible for leading a reshaping of ANZ’s internal culture while overseeing the integration of Suncorp.

Matos will earn A$2.5mn annually, with potential bonuses bringing his total remuneration to A$5.9mn. Investors responded cautiously to the news, with shares in ANZ dropping 3.6 per cent on Monday.

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Shares in Banco BPM soared to their highest level in nearly nine years on Monday, rising as much as 3.9 per cent in early trading. The rally followed Crédit Agricole’s announcement late on Friday of plans to raise its stake in the Italian lender from 10 to approximately 15 per cent.

According to sources cited by Bloomberg News, the move is expected to bolster Crédit Agricole chief executive Philippe Brassac’s position in potential negotiations with UniCredit, which recently launched a €10.1bn unsolicited takeover bid for Banco BPM.

The French bank, already Banco BPM’s largest shareholder, has significant joint ventures in consumer credit and insurance with the Italian lender. Crédit Agricole’s asset management arm, Amundi, also relies heavily on UniCredit for its sales in Italy. Analysts quoted by Bloomberg see the increased stake as a strategic tool to safeguard Amundi’s distribution agreements.

“The stake is the main bargaining chip to protect or even enhance Amundi’s distribution agreement with UniCredit,” JPMorgan analyst Delphine Lee wrote in a note, adding that a counterbid for Banco BPM is unlikely.

Brassac and UniCredit chief Andrea Orcel are reportedly working to arrange a meeting in the coming weeks to discuss the takeover bid. Talks are expected to include extending Amundi’s contract and the potential sale of minority stakes in Banco BPM’s consumer credit unit, Agos Ducato, according to Bloomberg’s sources. 

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Leading social mobility organisations are calling on the UK’s Financial Conduct Authority and Prudential Regulation Authority to force socio-economic background reporting for employees in the country’s financial services sector, a move they believe could help dismantle the “class ceiling” that limits opportunities for individuals from less privileged backgrounds, according to a report by the Financial Times on Sunday.

In a letter to regulators seen by the FT, upReach, the Social Mobility Foundation and Progress Together said that greater diversity in employee backgrounds would enhance economic growth, improve risk management and better serve consumers.

Almost 90 per cent of senior employees in British financial services come from higher socio-economic backgrounds, according to a survey by the Bridge Group of nearly 8,000 staff across financial services companies and regulators.

Last year, the FCA and PRA proposed a voluntary reporting requirement for financial institutions to disclose the socio-economic backgrounds of their staff, alongside mandatory reporting on other diversity metrics such as age, ethnicity and gender. The consultation on this proposal closed a year ago, with the final rules expected by mid-2025.

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The Australian Prudential Regulation Authority announced on Monday that it will move ahead with forcing local banks to replace their AT1 bond stakes for cheaper and more reliable bonds. 

The move makes Australia the first country to phase out banks’ use of contingent convertible securities. The bonds were introduced after the global financial crises, but were deemed controversial due to the high exposure of Australian retail investors.

Research from S&P says it’s “unlikely” that the initiative will be replicated in other jurisdictions.