ANZ’s Share Price Falls after Warning of Additional Remediation Costs

ANZ Banking Corporation’s [ASX:ANZ] share price has fallen 1.98% upon opening this morning, after revealing that its full-year cash profit will be impacted by a further $374 million of costs.

The bank’s shares have fluctuated greatly over the past six months, ranging between $26.20 and $30.28. At time of writing, shares of ANZ are sitting in the mid-range of this at $27.17.

What are the costs related to?

The $374 million have been recognised in the second half results for 2018 as ‘refunds to customers and related remediation costs’.

ANZ has said that 57% relates to customer refunds impacting revenue, with the remaining balance related to remediation costs.

Of those remediation costs 66% is related to continuing operations and 34% to discontinued operations.

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In addition, an accelerated amortisation expense of $206 million, predominantly related to its international business, will be recorded in the second half results for 2018.

ANZ provided a summary of its additional charges for the second half of 2018 in the table below:

ANZ news release table

Source: ANZ News Release

The bank’s 2018 financial year results will be released on 31 October, 2018.

Regards,


Ryan Clarkson-Ledward,
For Markets & Money

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Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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