ANZ Drops KPMG as Auditor After 57 Years Amid Scandal

ANZ has terminated its 57-year audit relationship with KPMG, ending a A$29 million annual contract that began in 1969. The decision makes ANZ the latest major Australian bank to dump the accounting firm following a damaging whistleblower scandal. KPMG faces mounting pressure as clients including Macquarie Bank and Lendlease have also ended their relationships with the firm.

Why ANZ is ditching KPMG now

ANZ said the 57-year tenure was no longer appropriate and had been under board review for some time. The bank did not mention the whistleblower scandal in its official statement, instead citing the length of the relationship and the firm’s planned integration of Suncorp Bank as reasons for the change. A whistleblower alleged in 2024 that KPMG senior partners misused confidential client information to win audit work, claims that Senator Deborah O’Neill made public in March 2026.

The scale of KPMG’s client exodus

ANZ’s exit adds to a growing list of blue-chip clients abandoning KPMG. Lendlease ended its 68-year relationship after confidential board papers were misused by KPMG staff. Macquarie Bank also recently dumped the firm. Insurance Australia Group has also reviewed its audit arrangements with KPMG. The leaks scandal has shaken KPMG’s leadership, with its chief executive and several senior partners leaving the firm.

What happens next for ANZ and KPMG

ANZ will run a competitive tender process to replace KPMG, with a new auditor expected to begin in the 2029 financial year. The process should be finalised by April 2027. KPMG declined to comment on the decision. The firm has also faced a three-month freeze on bidding for new Commonwealth government contracts and a referral to the National Anti-Corruption Commission.

Impact on ANZ shareholders

ANZ shares rose 0.48% to A$37.37 on October 2, a modest move that suggests the market has already priced in the audit change. Meyka rates ANZ a B (Hold) with a 12-month price target of A$40.16. The stock trades at a PE ratio of 19.2 and offers a dividend yield of 4.46%, making it attractive to income investors despite the auditor transition. The tender process itself poses no material risk to ANZ’s operations or financial reporting.

Final Thoughts

ANZ’s exit from KPMG reflects the firm’s reputational damage from the whistleblower scandal rather than any weakness at the bank itself. With Meyka grading ANZ a B and the stock offering a 4.46% dividend yield, the auditor change is a governance refresh, not a red flag for investors.

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