- 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.