ANZ keeping options open on dividend despite higher repayment numbers
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ANZ keeping options open on dividend despite higher repayment numbers
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ANZ Bank s new chair Paul O Sullivan says the lender s dividend policy will be guided by how the coronavirus crisis evolves, despite the bulk of its customers affected by the pandemic lockdowns restarting to make payments.
Mr O Sullivan, speaking at the bank s annual general meeting on Wednesday, said he was acutely aware of how important dividends are to shareholders and committed to reviewing the bank s approach in 2021.
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Thirty per cent of ANZ shareholders have backed a resolution for more disclosure on strategies to cut lending to the coal and oil and gas sectors, as the bank s new chairman Paul O Sullivan pledged to support the shift to a low carbon economy.
After ANZ released a tougher policy on thermal coal lending in October, it faced several questions during a virtual annual meeting on Wednesday on whether it would further restrict lending to carbon emitters to ensure targets set out in the Paris Agreement on climate change can be met.
Mr O Sullivan, chairing his first ANZ AGM after taking over from David Gonski who retired in October, said the bank was keen to back renewable energy players, as it worked with its 100 largest carbon-emitting customers with “their public commitments to transition to a net zero economy”.
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It said: “Since July, there has been an improvement in the economic outlook, bank capital and provisioning levels have strengthened, and the majority of loans that were previously granted repayment deferral have recommenced repayments. However, a high degree of uncertainty remains in the outlook for the operating environment”.
In a BetaShares webcast, chief economist David Bassanese, said this would be a positive for income investors, particularly retirees, who relied on banks for their strong dividend payouts.
“The underperformance of Australian banks could be over and we think banks will do reasonably well over the next few months. They will be no longer restricted on their dividends so that’s good news for those who rely on bank dividends,” he said.
Money Management report that ASIC had confirmed the use industry funding to support the consumer submissions.
Answering a question on notice from a Parliamentary Committee, ASIC said, while it lacked a dedicated budget, it would from time to time support a funding allocation of between $10,000 and $15,000 for the preparation of consumer submissions to an existing policy consultation process”.
The Parliamentary questioning of the ASIC funding model arose out of confirmation that ASIC’s Consumer Advisory Panel (CAP) had played a role in ensuring funding to two Griffith University academics to write a submission with respect to the Financial Adviser Standards and Ethics Authority code of ethics.