ANZ takes a hit for customer remediation charges

ANZ profits to be cut by $A559m in the second-half of 2019
Profit for the second-half of 2019 to be slashed by $A559m Photo credit: Newshub.

ANZ Bank's after-tax profit for the second half of 2019 will be cut $A559m due to increased provisions for customer remediation, the company announced on Tuesday.

The charge relates to issues identified from various reviews, which are ongoing.

Michelle Jablko, chief financial officer, said that the company recognises the impact on customers and shareholders.

"We are well progressed in fixing issues and have a dedicated team of more than 500 specialists working hard to get any money owed back to customers as quickly as possible," Jablko said.

A spokesperson for the bank confirmed that the remediation is largely an Australian issue.

"It mainly affects our continuing business, being retail and commercial.

"A small number of customers are impacted in New Zealand," he said.

The bank is undertaking various product reviews to ensure that interest and fees have been charged correctly and will refund impacted customers directly.

Customer mediation had cost the Australian-owned bank $A123m in the first half of 2019.   

Profit for the second-half of 2019 will be announced on 31 October.