ANZ’s full-year profit has dropped 24 per cent to $5.7 billion, hit by nearly $1.1 billion of write-downs as the bank restructures away from Asian retail banking.

The bank said its preferred measure of cash profit was down 18 per cent to $5.9 billion while, if one-off charges were excluded, adjusted pro-forma cash profit was off 3 per cent to $7 billion.

The bank is paying an 80 cent final dividend — identical to the first half— and total payments for the financial year are down 12 per cent on the previous year.

The more than $1 billion worth of charges that eroded the cash profit largely related to changed accounting practices and the treatment of the value of the bank’s IT platforms.

Restructuring costs associated with the loss of 500 jobs accounted for $100 million and there was also a $168 million write-down in the value of derivatives held in its markets business, which were pre-announced last week.

Impairment charges as a percentage of the total loan book rose 12 basis points from 0.22 per cent to 0.34 per cent.

“While in aggregate the credit environment is broadly stable, pockets of weakness continue to work their way through the economy, largely reflecting stress moving through the resources and resources related sectors,” the ANZ noted in a statement released to ASX.

“The stress appears to have now largely passed through the institutional market and is progressively moving through the commercial and retail sectors.”

Net interest margins fell by 4 basis points to 2 per cent reflecting tougher competition and rising cost pressures.

Morgan Stanley’s Richard Wiles described the result as “messy” but basically in line with consensus.

“Flattish revenue was boosted by markets income, but expenses were higher than forecast,” he wrote in a note to clients.

ANZ chief executive Shayne Elliott described the result as a “good performance” highlighted by consumer and small business lending and a disciplined approach to market share and cost management.

– ABC