Join our daily newsletter At The Bell to receive exclusive market insights
The ANZ Banking Group (ASX:ANZ) has flagged a A$196 million after-tax charge that will impact its second-half profits in 2024 off the back of accounting-related adjustments from its Suncorp Bank (ASX:SUN) acquisition.
The $196 million fee will be split between $25 million for accelerated software amortisation and a $171 million collectively assessed credit impairment charge.
This after-tax charge will see a 2 basis point reduction to ANZ’s level 2 common equity tier 1 capital in its second half results, the group said today.
The $196 million hit is expected to be a one-off for the lender.
ANZ also confirmed the adjustments that led to the charge “had no impact on the assessed value of the acquired Suncorp Bank business nor the purchase price paid.”
The Melbourne-based lender, which makes up one-quarter of Australia’s ‘Big Four Banks,’ put a bow on its $4.9 billion Suncorp Bank buy earlier this year. The Federal Treasurer went over everything for nearly two years before approving the major acquisition of the Queensland insurer’s banking business.
Investors now wait to see how this reported $196 million hit impacts ANZ’s full-year results once shared on November 8. Suncorp will present as a separate division.
ANZ last traded at $31.71 today, while Suncorp has been at $18.04.
Join the discussion. See what HotCopper users are saying about ANZ and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
