ANZ flags additional $1b-$1.5b share buyback

Australia and New Zealand Banking Group has flagged the likelihood of an additional buyback of shares to the tune of $1 billion-$1.5 billion, over and above an ongoing program and as a part of a broader capital management drive.

ANZ also said in a statement it finalised reinsurance arrangements with Zurich Insurance Group - to which ANZ sold its insurance arm in December - and had received about $1 billion as proceeds. That would result in an increase of about 25 basis points in its Common Equity Tier 1 capital, ANZ added.

ANZ said the proceeds were a component of the OnePath insurance business sale transactions in the form of reinsurance commission. The $2.85 billion sale followed a series of non-core divestments across Asia.

Soon after the OnePath sale last year, ANZ had said it would start buying back up to $1.5 billion of it shares on-market, to begin returning surplus capital. Back then, it had also said it would consider further capital management initiatives as it received proceeds of its divestments.

Reuters