ANZ takes profit hit

  • By Elizabeth Fry

ANZ announced on Friday that its interim cash profit will be hit by several large and notable items adding up to $817 million, or around 5 basis points of common equity tier one capital.  

The bank is due to release its first-half profit on Wednesday, May 5.  

ANZ said these items included $135 million after-tax of equity-accounted losses from AMMB Holding Berhad. In a statement, ANZ also flagged a $215 million write-down of goodwill related to tits retail share investing business, $108 million of after-tax customer remediation charges, and $63 million of after-tax restructuring charges.  

In Friday’s release, the bank also detailed some previously announced charges including $48 million of after-tax charges to settle a US class action and $212 million in after-tax charges of losses from AmBank.   

The announcement comes close on the heels of Westpac announcing its interim earnings would be cut by $282 million after-tax due to notable items.   

These items included customer refunds, software write-downs, and associated costs and litigation provisions These losses were partly offset by: - a net gain of $288 million on the revaluation of the ANZ's 50 percent stake in Coinbase and an $18 million gain on sale of the Group’s holding in Zip.