Market Herald logo

Subscribe

Be the first with the news that moves the market
  • ANZ has flagged a $559 million dollar profit loss for the second half of the year
  • This half a billion dollar loss is due to customer remediation charges
  • The banking giant says the charges stem from issues with fee and interest calculations and advised that more than 500 specialists are working on refunding affected customers
  • ANZ’s share price is up 0.55 per cent today, currently sitting at $27.45 per share

ANZ is the latest bank to take a loss to its yearly earnings at the hands of customer remediation charges.

The banking giant informed the market today its cash profits for the second half of 2019 will be down $559 million as it works to financially refund affected customers.

The new remediation charges follow the bank launching a review process to identify customers who have been affected.

ANZ identified the primary source of remediation funds is stemming from product reviews in Australian retail and commercial sectors for “fee and interest calculation and related matters”.

During the Banking Royal Commission a key issue raised was banks charging customers fees without receiving a service in return.

“We recognise the impact this has on both customers and shareholders,” ANZ’s Chief Financial Officer Michelle Jablko said.

“We are well progressed in fixing issues and have a dedicated team of more than 500 specialists working hard to get any money owed back to customers as quickly as possible,” she continued.

Discontinued operations, after tax, will account for $154 million of the losses. These are related to the bank’s advice remediation program and customer compensation charges for additional wealth products.

However, at midday trade shareholders are undeterred by the banks half a billion dollar loss. Shares in ANZ are up 0.55 per cent today, currently sitting at $27.45 apiece.

ANZ by the numbers
More From The Market Herald
Fortescue Metals Group (ASX:FMG) - Departing CEO, Elizabeth Gaines

" Fortescue Metals (ASX:FMG) records highest number of half-year shipments

Fortescue Metals (ASX:FMG) records its highest number of shipments for a half year at 93.1 million…
Zip CO (ASX:Z1P) - CEO, Larry Diamond

" Zip Co (ASX:Z1P) confirms potential acquisition of Sezzle (ASX:SZL)

Buy now, pay later company Zip Co (ASX:Z1P) confirms it is looking to buy Sezzle (SZL),…

" Fortescue (ASX:FMG) to buy Williams Advanced Engineering for $310m

Fortescue Metals Group (ASX:FMG) plans to acquire technology and engineering services firm Williams Advanced Engineering (WAE)…

" Northern Star Resources (ASX:NST) spikes on December quarter gold sales

Shares in gold mining big-cap Northern Star Resources (ASX:NST) have risen in early action following the…