ANZ flags $190m remediation hit

The bank flagged a larger than expected hit to its bottom line in the second half of 2020 as it accelerates its customer remediation program.

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.

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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 $190m remediation hit
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