ANZ (ASX:ANZ) flags $559 million blow to profits

Company News

by Anna Napoli

ANZ (ASX:ANZ) will take a $559 million hit to its second half 2019 cash profit as a result of increased provisions for customer related remediation.

Within the group's continuing operations, remediation charges for the second half of 2019 will be  $405 million after-tax largely related to product reviews in Australia retail & commercial for fee and interest calculation and related matters.

Meanwhile ANZ's discontinued operations, remediation charges recognised in the second half of 2019 will be e $154 million after-tax, due to costs emerging from its advice remediation program and customer compensation charges for other wealth products.

ANZ says it recognises the impact this has on both customers and shareholders. The company says it is progressed in fixing issues and has a dedicated team of more than 500 specialists working hard to get any money owed back to customers as quickly as possible.

Shares in ANZ (ASX:ANZ) are trading 0.04 per cent lower at $27.29.
 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.