SEARCH
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].
BetaShares has announced the launch of new ETFs to offer investors access to two of the world’s most significant alternative energy sourc...
Agricultural land could be highly beneficial for investors and should be taken seriously as a long-term investment according to Tim Samway, ...
The dominance of resource and mining companies is a major contributing factor to potential losses. ...
Get notifications in real-time for staying up to date with content that matters to you.
Read More
