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ANZ flags $528m hit to profit

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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.

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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.

 

ANZ flags $528m hit to profit
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Sarah Simpkins

Sarah Simpkins

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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