The bank finds itself in the headlines once again.
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ANZ Group Holdings Ltd (ASX: ANZ) shares are in the spotlight on Wednesday as reports surface the Australian Securities and Investment Commission (ASIC) has the bank in its sights once more.
While the reports aren’t price-sensitive, this is not the first time ANZ has been in the regulator’s sights in the past year.
Zooming out, ANZ shares are up more than 6% this year already, trading 0.63% higher at $30.34 apiece at the time of writing. Let’s take a closer look.
ANZ shares in spotlight
ANZ shares are in focus today after reports have surfaced detailing a fresh ASIC investigation into the company.
As reported by The Australian, the regulator is probing whether ANZ miscalculated and then wrongly paid interest on thousands of customer savings accounts.
ASIC is also examining how ANZ manages hardship cases for customers in financial distress.
As a result, the reporting suggests ANZ might be up for a “string of regulatory investigations”. And, that these could all “come to a head in the coming months”.
Speaking to the media outlet, an ANZ spokesperson said it was in “constant dialogue” with regulators about “a variety of matters”.
The spokesperson said ANZ was “focused” on customers that “may be facing financial difficulty…”.
To address these issues, ANZ has reportedly brought in global consultancy giant McKinsey to help overhaul its processes.
Regulatory hurdles piling up for ANZ
While today’s news isn’t price-sensitive to ANZ shares, a look back over the past 12 months reveals that this isn’t the first time ANZ has grabbed headlines for an ASIC investigation.
In December, ASIC opened investigations into the bank’s retail division. As also reported by The Australian, this came after it was alleged to have charged fees to deceased customers’ accounts — a practice highlighted in the Hayne Royal Commission.
Meanwhile, as I reported in November last year, the ANZ markets division faces allegations of bond market manipulation. This is linked to a $14 billion government bond sale in 2023.
The result of that investigation saw ASIC sidelining ANZ from major deals, including Australia’s $7 billion green bond sale. Competing banks did get to participate.
This, among other reasons related to the bank’s financials, is why Ord Minnett reckons ANZ shares aren’t “fundamentally cheap”.
Nuno Matos, the incoming ANZ CEO, who will start in July, will face quite the task in his first months of tenure.
Foolish takeout
ASIC’s investigations into the company have not stopped ANZ shares from continuing their ascent in the new year.
The latest builds on a series of investigations the regulator has against ANZ, and concerns potential interest payment miscalculations.
ANZ shares are up almost 14% in the past 12 months, outpacing the broader market by around 2%.
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
