Australia’s ANZ warned on Friday that its earnings would take a hit of A$1.11 billion (S$937.5 million) after tax in the second half of fiscal 2025 due to charges related to restructuring, staff cuts and a major regulatory settlement.
The lender is in the process of streamlining its business and bolstering risk management following a period of elevated regulatory scrutiny.
The bank said the charges will cut its common equity tier 1 capital ratio by 19 basis points.
ANZ expects to incur A$414 million in after-tax charges on redundancies and recognise A$264 million post-tax cost tied to settlements with the Australian Securities and Investments Commission to resolve several matters involving its markets and retail businesses.
The group will book a further A$78 million after-tax charge for winding down its Cashrewards business, which it said no longer fits its strategic priorities.
The firm will also take a further non-cash impairment on its stake in PT Bank Pan Indonesia, booking a A$285 million post-tax charge after reviewing the value of the investment.
The bank has been paring back its Asian footprint in recent years, pivoting toward its core operations in Australia and New Zealand while retaining select partnerships in the region.
Separately, ANZ said it would incur A$68 million in after-tax costs linked to the accelerated integration of Suncorp Bank, after completion of the A$4.9 billion acquisition.
The company will report second-half results on Nov 10. REUTERS
