trending Market Intelligence /marketintelligence/en/news-insights/trending/4te40i0nrguhoa4a2gd9xw2 content esgSubNav
In This List

ANZ expects customer compensation, legal costs to hit FY'18 cash profit

Blog

Banking Essentials Newsletter 2021: December Edition

Blog

Automating Credit Risk Surveillance Using Statistical Models

Blog

Post-webinar Q&A: Speed and Scalability – Automation in Credit Risk Modeling

Case Study

A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade


ANZ expects customer compensation, legal costs to hit FY'18 cash profit

Additional compensation costs and expenses related to the banking royal commission are expected to impact Australia & New Zealand Banking Group Ltd.'s cash profit for the full year ended September.

The bank has so far recognized about A$374 million in customer refund charges and related remediation costs in the second half. According to ANZ, part of the compensations are for customers who received inappropriate advice or those charged for services not provided within the bank's former aligned dealer groups.

Further, the group expects a total of A$55 million in external legal costs associated with responding to the royal commission, and A$104 million in restructuring costs in its Australia technology divisions.

ANZ expects the additional charges to affect its common equity Tier 1 capital position by less than 10 basis points compared with the fiscal first half.

The bank will release its full-year results Oct. 31.