ANZ New Zealand CEO departs over health, expenses concern

ANZ New Zealand’s boss has left amid health issues and a dispute over chauffeur-driven cars.

ANZ New Zealand CEO David Hisco

ANZ says its New Zealand boss David Hisco has left the bank because of health issues and what it calls concerns about personal expenses.

Mr Hisco, who recently went on sick leave, is understood to have been involved in a dispute over the charging of chauffeur-driven cars used for personal purposes.

His departure, and the appointment of Antonia Watson as acting CEO, come as New Zealand regulators consider tougher capital requirements in a market where Australian banks are dominant.

ANZ said as well as Mr Hisco’s ongoing health issues, the NZ bank’s board was concerned “about the characterisation of certain transactions following an internal review of personal expenses”.

While not immediately providing more details, it said in a statement: “While Mr Hisco does not accept all of the concerns raised by the board, he accepts accountability given his leadership position and agrees the characterisation of the expenses falls short of the standards required.”

It is understood chauffeur-driven cars were booked directly to the bank and the bill in question was in the order of $25,000. The bank alleges the trips were for personal reasons and not bank business.

The practice was uncovered after a review by ANZ chief Shayne Elliott.

Mr Hisco, a 55-year-old Australian, has been CEO of ANZ New Zealand since 2010. He has held other senior executive roles during a 30-year-plus career with ANZ.

ANZ New Zealand chair Sir John Key said: “We are disappointed David is leaving ANZ under such circumstances after such a long career, however his departure is the right one in these circumstances given the expectations we have of all our people, no matter how senior or junior.”

Previously boss of ANZ’s retail and commercial banking units, Mr Hisco earned $3.5 million in the last full financial year.

Mr Hisco will receive his contracted and statutory entitlements to notice and untaken leave, but will forfeit all unvested equity.

ANZ bank said in early May that the CEO was on sick leave.

The bank said Ms Watson would step into the acting CEO role while a replacement was sought.

“Antonia’s extensive banking career has her well placed to help ANZ manage through this transition,” Sir John said.

The Reserve Bank of New Zealand and Australian Prudential Regulation Authority have been notified of the changes and are being provided all requisite filings.

ANZ’s ASX-listed shares dipped slightly at the open and, although they recovered to sit flat at $28.22 by 10.12am (AEST), were the worst performing among the big four banks in early trade.

The departure is the second cloud for ANZ in New Zealand in recent weeks. In May, the Reserve Bank of New Zealand revoked ANZ New Zealand’s accreditation to model its own operational risk-capital requirement due to what it said was persistent failure in its controls and attestation process.

ANZ and other major banks in Australia are separately fighting to rebuild their reputation following last year’s government-ordered Hayne royal commission.

It comes as the big four banks face the prospect of having to raise the capital requirements of their banks in New Zealand.

The Reserve Bank of New Zealand has proposed hiking the minimum capital requirement for the country’s systemically important banks from the current level of 10.5 per cent to 18 per cent.

Higher-quality tier-one capital would be raised from 8.5 per cent to 16 per cent, in a bid to protect the financial system from a full-blown crisis that might only occur once in every 200 years, it’s proposed.