ANZ has signalled its second-half profit will be knocked by a $528 million charge, with a rise in customer remediation costs partly to blame.
ANZ is due to release its full-year results on Thursday, ahead of Westpac and NAB next week.
Remediation charges for the big four bank have totalled at $188 million after-tax for the second half of the 2020 financial year, largely due to an acceleration of remediation programs and product reviews across the group.
Customer remediation has cost the group $279 million for the full year, a considerable decrease from $475 million in FY19.
Meanwhile changes to the application of ANZ’s software amortisation policy have resulted in a $138 million charge after-tax, for the second half. The changes were said to reflect the increasingly shorter useful life of various software assets caused by fluctuating technology and business requirements.
The remaining charge of $202 million after-tax includes the write-down of goodwill in ANZ’s Pacific business, the impact of accounting changes on ANZ’s investment in Indonesian bank PT Panin and restructuring changes.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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