14/10/2025

BIZ & FINANCE TUESDAY | OCT 14, 2025

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ANZ halts buyback to save A$800m for overhaul

New Zealand accused of ‘climate denial’ WELLINGTON: Environmental campaigners have accused New Zealand’s government of “full-blown climate denial” after it slashed targets for reducing emissions of methane, a potent greenhouse gas that contributes to global warming. New Zealand’s right-leaning coalition government outlined plans on Sunday to reduce methane emissions by between 14% and 24% by 2050, compared to 2017 levels. The previous target was between 24% and 47%. Farmers – who had taken issue with the previous target – praised the move, but scientists and opposition parties criticised it as “weak” and “unambitious”. Greenpeace’s New Zealand office said the policy shift“amounts to full-blown climate denial”. Amanda Larsson, a climate campaigner with the environmental group, said Prime Minister Christopher Luxon was “choosing ... corporate profits over our kids’ future”. Climate Change Minister Simon Watts said the government “remains committed to our domestic and international climate change commitments, including net zero by 2050”. “Agriculture will continue to make an important and fair contribution to achieving this reduction.” The government also confirmed that it would conduct a legislated review of biogenic methane targets in 2040, and impose no tax on agricultural methane emissions due to the threat of farm closures. It will also invest NZ$400 million (RM972 million) in methane-cutting technology. Watts said total agricultural emissions could fall by up to 14% over the next decade if 30% of farmers adopted technologies expected to be available before 2030. But Massey University climate mitigation expert Ralph Sims said there was“no guarantee” that scientific research would provide near-term solutions to biogenic methane. Biogenic emissions include those belched out by the country’s five million cows and 23 million sheep. Agriculture accounts for almost half of New Zealand’s greenhouse gas emissions, according to government figures. – AFP Seoul plans civilian nuclear bunker SEOUL: Authorities in Seoul plan to build the South Korean capital’s first civilian bunker capable of withstanding a nuclear attack underneath a public housing complex by 2028, a city government official said yesterday, to guard against threats by the North. The metropolitan government and Seoul Housing and Communities Corp plan the shelter for 999 households designed to withstand nuclear, biological or chemical attacks, the official said. The bunker in the basement of the housing complex will span 2,147 sq m, accommodate up to 1,020 people at a time, and be equipped for 14 days of survival. The Seoul Shinmun newspaper, which first reported the plan, said it was the first such move by a local government in the face of a heightened nuclear threat from North Korea. At a massive military parade on Friday, North Korea displayed its latest ballistic missiles capable of carrying nuclear warheads to targets in South Korea or as far as the US. South Korean President Lee Jae Myung has said the most realistic path to lowering the risk from the North is to secure a freeze on its manufacturing of nuclear bombs and missiles, but Pyongyang has rejected diplomatic overtures for now. –Reuters

The bank will also reduce reliance on mortgage brokers and aim to write more loans directly to boost its revenue from home lending. ANZ’s mortgage market share stands at about 13.5%, lagging its major rivals National Australia Bank at 14%, Westpac at 21% and market leader Commonwealth Bank at 25%, according to recent regulatory data. ANZ last month unveiled plans to slash 3,500 jobs at a one-off cost of A$560 million. Matos said yesterday about 60% of the job cuts would come from the retail bank and technology division. The former top HSBC executive has launched the reset at ANZ at a time when it is tackling major reputational issues and regulatory wrangles. The agency in charge of issuing Australian government debt said last week it would not work with ANZ until the bank improved its risk culture, after a 2023 bond trading scandal. ANZ agreed with Australia’s corporate regulator to an A$125 million penalty after it was accused of acting “unconscionably” during a syndicated government bond deal in 2023. The fine was part of a A$240 million penalty ANZ agreed to pay after it was also accused of charging fees to thousands of dead customers and miscalculating bonus interest payments. – Reuters

company in the first year are so obvious,” he said at an investor briefing. Shares in Australia’s fourth-largest bank closed 3.3% higher as investors reacted to Matos’ plan, while rival major bank shares fell. ANZ said it would now target a 12% return on tangible equity by 2028, up from 10.3% in the past financial year, and aimed to achieve a target of 13% by 2030. “With a clear strategy, strong leadership and this simple execution, we are well placed to deliver meaningful value for our shareholders,” Matos said. Investors had expected the bank would announce plans to cut its dividend or stop the share buyback to help conserve cash. The bank said on Monday it expected its final dividend to be in line with its half-year payout. “For the bank to come out that it is not cutting the dividend is a positive result for shareholders and confirms that the bank is in reasonable shape,” said Michael Haynes, analyst at Atlas Funds Management, which holds ANZ shares. Matos said the lender said it would increase its mortgage and business banker numbers by up to 50% in each division as it bids to win back market share it has lost to major rivals.

SYDNEY: Australia’s ANZ Group said it would stop the remaining A$800 million (RM2.2 billion) of a share buyback but maintain its dividend as investors applauded CEO Nuno Matos’ moves to build cash levels, simplify the bank and win back market share. ANZ yesterday also outlined plans for A$800 million of pre-tax cost savings this financial year that would come from previously announced job cuts as well as team restructurings and exiting non-core businesses like online shopping platform Cashrewards. The bank also now expects to double its cost savings from its 2024 acquisition of Suncorp Bank to A$500 million a year. Matos said ANZ had become too complex and disconnected from customers, and the bank’s priority would be to improve its non-financial risk management. “The opportunities to rationalise the o CEO seeks to quit non-core businesses, beef up mortgage lending

Tata Capital makes subdued debut, valuing it at 1.4 trillion rupees MUMBAI: Tata Capital, India’s third-largest non-bank lender by revenue, was muted in its debut trade yesterday, valuing the firm at 1.4 trillion rupees ((RM66.7 billion), with investors seemingly not that keen on the first listing by the storied Tata Group in nearly two years. As of 10.57am, Tata Capital shares traded at 329.8 rupees, slightly higher than their offer price of 326 rupees. Its market capitalisation at the current price trails Bajaj Finance and Jio Financial Services, which are valued at US$72 billion and US$22 billion, respectively. “This is probably the first time we have seen such muted demand for an IPO from Tata Group.” Strong interest in LG Electronics India’s IPO and negative news surrounding the Tata Group, including boardroom turmoil, also weighed on demand for Tata Capital’s share sale, said Dhiraj Relli, CEO at HDFC Securities.

Tata Capital’s subdued debut has come in a busy IPO market, where analysts say investors appear to be favouring LG Electronics India’s share sale as they expect stronger listing gains and near-term growth, helped by recent tax cuts.

Last week, while Tata Capital got bids worth US$2.9 billion for its IPO, LG Electronics India’s public issue, which opened a day later, received nearly US$50 billion worth of bids. – Reuters

Tata Capital’s IPO was fairly priced but the lack of a major valuation discount to its listed peers was one of the key factors for the tepid response, said Ambareesh Baliga, an independent market analyst.

(From left) National Stock Exchange CEO Ashish Chauhan, Tata Capital CEO Rajiv Sabharwal, Tata Sons chairman Natarajan Chandrasekaran and Tata Capital chairman Saurabh Agrawal pose with a bull statue at the NSE in Mumbai. – REUTERSPIC