ANZ announces remediation cost hit to cash profit
ANZ on Tuesday announced that its cash profit for the second half will be hit by a $559 million in remediation costs
The bulk of the cost - $405 million – both numbers on an after-tax basis - relates to fee refunds for its products in the retail and commercial division and $154 million associated with the sale of its wealth business.
Overall, the bank has earmarked $682 million in customer remediation costs for the 12 months to September.
Over the last two financial years, the total remediation bill stands at $1.1 billion
“We recognise the impact this has on both customers and shareholders,” ANZ chief financial officer Michelle Jablko said.
“We are well progressed in fixing issues and have a dedicated team of more than 500 specialists working hard to get any money owed back to customers as quickly as possible,” she said.
ANZ is due to report its annual results on the 31 October.
It was only in early October when National Australia Bank announced a $1.2 billion hit from customer remediation and software write-downs.