Finance Finance News ANZ flags $824m hit to full-year profit

ANZ flags $824m hit to full-year profit

The lender will pay out $421 million in customer remediation. Photo: Getty
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ANZ has flagged an $824 million hit to its full-year profit due to impairments and one-off expenses, more than half of it related to customer remediation.

The lender, which will announce its results on October 31, says the $421 million in post-tax remediation costs covers customers charged fees for no service, inappropriate financial advice and other issues uncovered from product reviews.

“These relate to issues that have been identified from reviews to date,” ANZ said in a statement.

“These reviews remain ongoing.”

The remediation includes $127 million for businesses recently sold to IOOF, while other items include $159 million in restructuring costs and $38 million in royal commission legal costs.

The unaudited hit flagged on Monday is weighted toward the second half, with $711 million to be recorded in the six months to September 30.

Rival Westpac last month already warned its full-year cash earnings would take a $235 million hit due to a provision for customer compensation and litigation.