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.
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:
Source: ANZ News Release
The bank’s 2018 financial year results will be released on 31 October, 2018.
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