Ex-PM John Key quits ANZ NZ & ANZ Group boards

Banking / news

Chairman John Key stepping down from ANZ NZ's board next month, will quit parent ANZ Banking Group's board too

27th Feb 24, 9:58am by Gareth Vaughan

John Key.

Former Prime Minister John Key is stepping down from the boards of New Zealand's biggest bank ANZ NZ, and its Australian parent, the ANZ Banking Group, effective March 14.

Having quit as PM in December 2016, Key was appointed Chairman of ANZ NZ in January 2018, joining the ANZ Group board in February 2018.

He'll be succeeded in both roles by Scott St John, who has been on the ANZ NZ board since 2021. St John is the ex-CEO of First NZ Capital, now investment banking and wealth management firm Jarden.

Key's tenure as ANZ NZ Chairman was marked by the shock departure of the bank's long serving CEO David Hisco in 2019. At the time Key said Hisco's departure was by mutual agreement, after Hisco's expensing to the bank of chauffeur driven cars for personal use and wine storage dating back nine years came to light.

ANZ Banking Group Chairman Paul O’Sullivan said Key had; "made an enormous contribution to ANZ with his unparalleled international business and political experience playing a critical role in our ongoing success. As a Board we will miss his wise counsel, global insights and good humour and we wish him and his family the very best for the future."

Of St John, O'Sullivan said his "deep business experience, particularly in financial markets," makes him an ideal replacement for Key as Chairman of ANZ NZ.

"He [St John] has served admirably on the ANZ New Zealand Board since 2021 and we look forward to welcoming him to the Group Board next month [March 25],” Mr O’Sullivan said.

Key was quoted in ANZ's press release saying it's the right time to step back from his commitments.

St John also chairs Mercury NZ Ltd and Fisher and Paykel Healthcare and is on the Fonterra and NEXT Foundation boards. He was Chancellor of the University of Auckland from 2017 to June 2021.

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76 Comments

by rastus1 | 27th Feb 24, 10:17am 1708982248

..time to sell your shares.

by J.C. | 27th Feb 24, 12:29pm 1708990179

Aussie bank stocks are perennial favorites with Aussie boomers because of franking credits and the impenetrable property ponzi meaning that their profits are more or less guaranteed. Safest banks in the world apparently.

The top 10 stocks on the ASX comprise bank stocks, retail, and miners. What's more, they're approx 50% of total market cap. You could talk about concentrated, but the sheeple don't care. As long as the divs are there.

ANZ stock is up almost 10% YTD and 15% over the past 12 months. So you can argue it's par with inflation.

by middleman1 | 27th Feb 24, 1:08pm 1708992499

ANZ shares have been a terrible performer on a combined return basis over the long period I've owned them. Only recently have they started to show a bit more promise.

by J.C. | 27th Feb 24, 1:46pm 1708994782

Even with franking credits? Seem to be a no brainer for most people. I don't own any individual bank stocks, just exposure through ETFs.

by middleman1 | 27th Feb 24, 2:04pm 1708995898

Kiwi owners of Aussie shares get franking (imputation) credits only on the comparatively minor NZ sourced portion of Aussie banks earnings. So not a major consideration.

by Contrarian | 27th Feb 24, 3:11pm 1708999874

Key sold a chunk of his holdings in Palo Alto just before it crashed by 20 % a few days ago. Did he have ANZ shares too and sell them recently ? May be he knows something the investors don't ? Usually they announce such parting several months before, to keep the markets calmed.

by Contrarian | 1st Mar 24, 10:11am 1709241104

The cat is now out of the bag.

Article headline in Interest.co.nz now :

'Profit at New Zealand's biggest bank fell 22% in the December quarter as non-performing loans rose above $1 billion'.

by MediumPangolin | 27th Feb 24, 10:18am 1708982294

The rumor going around Jellicoe St is that he was caught in the lunch room one night pulling a cleaners ponytail.

by Nzdan | 27th Feb 24, 12:50pm 1708991441

Ah, the old "Clarke Gayford" rumor mill has found a new target?

by PineTreez | 27th Feb 24, 10:29am 1708982978

What's that expression about rats and ships?

This could be more telling about the stability of the banks than any OCR figures tomorrow.

by NZGecko | 27th Feb 24, 10:52am 1708984379

He is getting the hell out of Dodge before the banking industry SHTF.

WATCH THE NEXT ANZ REPORT ON THE (AND OTHERS) RATCHETING UP OF THEIR MASSIVE PREVISIONS FOR BAD RESI PROPERTY LOANS.......THEN CRE LOANS, WHICH WILL BE THE NEXT CLUSTER TO DROP!.

Banks are great at covering up and Airbrushing financial cliff edges out of everyone's view.........until at the last second, they shout "warning, warning, pull up, pull up".....BANG!

Key knows when to exit a ONCE winning position........

Has he shorted ANZ by untracable proxies?

by Averageman | 27th Feb 24, 11:14am 1708985655

This would be my thoughts as well. Smells like the CEO and the Chair bailing from Telecom when Chorus split was announced. Lets see what the next 6-12 months brings for the ANZ fortunes.

by CN - new | 27th Feb 24, 2:18pm 1708996737

A family friend was Chair at a NZ listed company. Resigned when they saw big issues coming. Directors don't want the potential liability exposure or potential protracted litigation.

by RickStrauss | 27th Feb 24, 3:42pm 1709001720

There for the fees, not responsibilities.

by CN - new | 27th Feb 24, 3:48pm 1709002132

Yes. Professional director is a vocation. Many need the pay check to pay their bills.

by Snow | 27th Feb 24, 10:46am 1708983995

Who called it the other day? Te Kooti?

by HouseMouse | 27th Feb 24, 11:17am 1708985851

Yes, someone was. Good call

by Te Kooti | 27th Feb 24, 11:43am 1708987435

No wasn't me.

I struggle to warm to him, but he's had a pretty stellar career. A decent guy, not so sure - but what does that count for in 2024 anyway?

by gnx | 27th Feb 24, 12:05pm 1708988748

15 Feb 2024 ... by gnx | 15th Feb 24, 9:15pm 1707984958. I get a gut feeling sometimes. I was wondering if John Keywill resign shortly. More time etc

by nathstar | 27th Feb 24, 12:23pm 1708989828

Nailed it! Well done!

by Snow | 27th Feb 24, 1:04pm 1708992284

Nice work gnx.

by agnostium | 27th Feb 24, 5:34pm 1709008490

Do you have a ponytail gnx?

by Peter M | 27th Feb 24, 10:50am 1708984222

Worrying is the short notice! He is stepping down in just over 2 weeks. Not what one should call a gradual handover of the responsibilities.

by JustAnOpinion | 27th Feb 24, 11:49am 1708987759

Indeed, this is a very good point. I suspect there is something in the water, but it could be political as much as economic.

by RickStrauss | 27th Feb 24, 12:26pm 1708989988

Seems to be a habit with him.

by Contrarian | 27th Feb 24, 3:14pm 1709000052

'Quit when Ahead'.. a great Maxim to live by and flourish. Key personifies that ?

by RickStrauss | 27th Feb 24, 3:43pm 1709001783

One does have cause to wonder each time, though.

by phalanax | 27th Feb 24, 10:55am 1708984551

Smart ....very smart... knows when to hold and when to fold....

by Due Diligence | 27th Feb 24, 11:03am 1708985007

Sick of Sharon’s nonsense interest rate hike predictions lol

by HouseMouse | 27th Feb 24, 11:19am 1708985961

Maybe he wanted her to spin things more. She may be wrong a hell of a lot of the time, but she’s at least a fairly straight shooter…

by DIYman | 27th Feb 24, 11:21am 1708986063

doesn't want to get caught up in a "Jenny Shipley- mainzeal like" mess. agree short notice departure is a big red flag,

by NZGecko | 27th Feb 24, 11:32am 1708986727

DIY......you nailed it.

Learn from others mistakes, legal own goals, and get the hell out of the Tsunami debris zone!

He did warn about the possibility of much "higher mortgage/borrowing costs and the possibility of 10% mortgage rates"

Perhaps this could be utilised in any future court hearings? Told you soo! The defence is ready!

by Rumpole | 27th Feb 24, 11:51am 1708987899

Rats deserting the stinking shit perhaps - asking for a friend of course.

by HouseMouse | 27th Feb 24, 12:14pm 1708989268

Legacy…

by youngdumbandfullofit | 27th Feb 24, 11:23am 1708986185

Black swan event

by NZGecko | 27th Feb 24, 11:37am 1708987030

Who in their right mind would be holding Banking shares currently?

Liken it to holding fresh tickets for the entire family on the Titanic!

by J.C. | 27th Feb 24, 12:36pm 1708990567

Who in their right mind would be holding Banking shares currently?

Liken it to holding fresh tickets for the entire family on the Titanic!

Why? Cards are stacked in their favor. Easiest business in town. Banks cannot fail if the ruling elite decides they shouldn't.

by middleman1 | 27th Feb 24, 1:16pm 1708992966

Yep. 2008. If banks tip over nowhere is safe.

by CN - new | 27th Feb 24, 2:04pm 1708995850

"If banks tip over nowhere is safe. "

People forget about the critical importance of Financial Stability until there is panic and loss of confidence. Banks rely on the confidence of their creditors.

Some recent examples include Silicon Valley Bank, First Republic Bank, and Credit Suisse.

by CN - new | 27th Feb 24, 2:01pm 1708995666

"Banks cannot fail if the ruling elite decides they shouldn't. "

Banks may need to be recapitalised if they need equity due to inadequate capital from loan losses.

One scenario is that the existing shareholders are unwilling or unable to recapitalise the bank and the government invests new capital and existing share holders are significantly diluted. Numerous examples of bank restructurings around the world.

Remember the recapitalisation of BNZ in the early 1990's?

by middleman1 | 27th Feb 24, 2:16pm 1708996595

Yep, dilution when re-capitalisation is required is always a risk of shares in any enterprise. Banks are no different; you estimate risk, pays yer money and takes yer chances. Despite ANZs indifferent track record at growing its equity, as the biggest bank they remain a pedestrian long term diversification investment proxy for the wider economy.

by Contrarian | 27th Feb 24, 3:19pm 1709000382

They are TBTF. Governments back them at times of crises. Safe bet for dividends, but one must cash out the profits often. Better still, take out your own investment and let the rest play on.

by Slapheid | 27th Feb 24, 11:43am 1708987424

Oh shite. My house deposit is locked up in their Term PIEs.

#unsecuredcreditor

by JustAnOpinion | 27th Feb 24, 11:51am 1708987899

Watch the canopy... https://www.youtube.com/watch?v=d3ZrWUqhoBU

by NZGecko | 27th Feb 24, 11:55am 1708988116

Don't worry, sh'el be right......

Safe as houses mate!

Property never goes backwards!

Well untill 2021........

We are all unsecured, so spread it like thin butter amoung the biggest banks and other asset classes.

Once they finally Implement the deposit guarantee scheme... ...which decade? .....your 100k Max will be Gummit guaranteed.

Tiĺl then, hold all bets and keep hardhats ready!

by J.C. | 27th Feb 24, 12:38pm 1708990718

Once they finally Implement the deposit guarantee scheme... ...which decade? .....your 100k Max will be Gummit guaranteed.

Robbo never got around to guaranteeing the 'savings' of the great unwashed (bank creditors who naively think that banks custody their money for them and prudently lend it for mortgages).

by middleman1 | 27th Feb 24, 1:20pm 1708993245

Spreading it thin among 'other asset classes' won't save you if the big banks toes curl up.

by J.C. | 27th Feb 24, 1:51pm 1708995098

Used ANZ's share trading platform (Aussie) after they bought it from ETrade then sold it to CMC last year. The linked cash accounts are with ANZ.

by MLSmith1 | 27th Feb 24, 12:00pm 1708988404

Dude knows when to jump ship... 'see ya later captain!'

by Hastings | 27th Feb 24, 12:13pm 1708989191

Just freeing commitments to lead up some of the short, sharp, surgical and lucrative reviews the government is undertaking. Banking sector’s about to get ugly.

by Te Kooti | 27th Feb 24, 12:30pm 1708990213

My pick, he heads up a large fund/PE firm to take State assets private.

Very lucrative work... ANZ pay is little league by comparison.

by middleman1 | 27th Feb 24, 1:22pm 1708993359

Pay rate irrelevant for a guy who can afford to buy and run his own helicopter.

by Te Kooti | 27th Feb 24, 2:32pm 1708997560

You are so wrong.

On an international scale he's a pauper. What sort of heli is he running? It's not that big a stretch tbh, probably running it through expenses as well so we are paying for 40% of it.

Try running a 50m yacht with 10 full time crew and then get back to me - that is entry level wealth.

by J.C. | 27th Feb 24, 3:03pm 1708999386

Wouldn't be invited to Nick Mowbray's parties. Max might. But not because of his wealth.

by middleman1 | 27th Feb 24, 4:19pm 1709003941

From distant memory he was said by pundits to be worth approx $50m when he ascended the throne. That was bound to be well understated and has probably at least doubled since then. True, by top end international standards that's a relatively modest fortune but still enough to afford a decent yacht. Entry level wealth ! OK.

by CN - new | 27th Feb 24, 4:27pm 1709004447

A friend previously worked for a rich lister.

The compilers of the rich lists only see one side in their calculations - assets.

There is little transparency on the other side of the balance sheet and this may not be captured.

by beau | 27th Feb 24, 12:27pm 1708990023

Tomorrows announcement is getting juicy

by linklater01 | 27th Feb 24, 1:16pm 1708992985

Where next? Bank of China perhaps?

by Whatwillhappen | 27th Feb 24, 1:36pm 1708994183

Reserve Bank of NZ?

by Contrarian | 27th Feb 24, 3:52pm 1709002364

Key is too smart to join RBNZ. He may take up a position at RBA if offered though.

by Zwifter | 27th Feb 24, 1:20pm 1708993245

No idea why he is still working, time to retire and enjoy things, the guy must be worth 20x what my net worth is and I quit work several years ago now.

by hum | 27th Feb 24, 2:11pm 1708996316

Power

by middleman1 | 27th Feb 24, 2:18pm 1708996697

Yep, will be some of that but if he enjoys the cut and thrust why not keep going.

by Yvil | 27th Feb 24, 3:39pm 1709001589

The idea of enjoying your work must be foreign concept to you guys.

by Zwifter | 27th Feb 24, 8:55pm 1709020529

I simply quit the full time day job of having to deal with dick head bosses and turned my hobby into a part time self employment working from home. Pretty sure everyone who has ever worked in this country can understand that concept.

by ngakonui gold | 27th Feb 24, 1:35pm 1708994128

Head up Heartlands entry in AUS?

by Yvil | 27th Feb 24, 2:07pm 1708996034

Some people are happy in life, others write sarcastic and cynical posts about every situation and every person, in a desperate attempt to make themselves feel better.

by middleman1 | 27th Feb 24, 2:21pm 1708996870

You can be both happy in life and enjoy engaging in a little sarcasm.

by the Joneses | 27th Feb 24, 3:02pm 1708999376

You don't sound like the happy type.

by middleman1 | 27th Feb 24, 4:13pm 1709003612

Projection.

by Dale Smith | 27th Feb 24, 2:24pm 1708997097

Didn't he introduce legislation where a bank can have access of your account with over $100,000 in exchange for bank shares, should they need any cash to cover a possible bank default?

by Kiwisaint | 27th Feb 24, 2:29pm 1708997348

ANZ shares up 0.5% at the moment for the day (as at 2.27pm).

by agnostium | 27th Feb 24, 7:07pm 1709014046

Oh oh, NZ banking sector is about to experience significant headwinds, if nothing else John Key has great timing.

by agnostium | 27th Feb 24, 5:19pm 1709007571

Maybe National will call him back into service like the Tories did with Cameron to solve the middle eastern crisis. To be fair, we could probably do with an experienced international operator.

by Palmtree08 | 27th Feb 24, 7:42pm 1709016126

It's amazing how far a smile will get you.

by Contrarian | 1st Mar 24, 10:11am 1709241082

The cat is now out of the bag.

Article headline in Interest.co.nz now :

'Profit at New Zealand's biggest bank fell 22% in the December quarter as non-performing loans rose above $1 billion'.