The bank will also take an after tax charge of $138 million in the second half as a result of changes to the bank’s software amortisation policy. The bank made no such provisions in the first half.
“These changes were made to reflect the increasingly sorter useful life of various types of software assets caused by rapidly changing technology and business requirements,” the bank said in a statement to the ASX at 5.26pm.
The bank will write off $77 million in goodwill associated with its operations in New Zealand and the Pacific, wear a $66 million charge flowing from the impact of the new AASB9 accounting changes at PT Panin – an Indonesian bank ANZ owns a 39 per cent stake in – and another $41 million in restructuring costs.
The half a billion dollar hit to shareholders follows last Friday’s Grand Final Eve announcement from NAB that it would take a $450 million hit as a systemic underpayments problem mushroomed.
The confession from NAB was swiftly followed by Monday’s announcement from Westpac that the additional $400 million it needed for the AUSTRAC fine would shrink its full year profit by $1.2 billion.
ANZ said the impact of the extra charges on common equity tier one capital (CET1) would be small, coming in at around 5 basis points.
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