(Reuters) - Australia and New Zealand Banking Group (ANZ.AX) said its second-half 2019 cash profit will be affected by a charge of A$559 million ($376 million) due to increased provisions for customer-related remediation.
ANZ and its other “Big Four” banking peers have been facing regulatory pressure to repay customers for past wrongdoings that were brought to light by a powerful inquiry.
The cost of remediation has weighed heavily on earnings, with Australia’s fourth-largest lender by market capitalization resorting to scaling back costs in a bid to bump up its first-half profit.
ANZ said in a statement the charges relate to issues that have been identified from reviews to date and these reviews remain ongoing
Expenses related to remediation, as well as a generally weaker operating environment had seen Commonwealth Bank of Australia (CBA.AX), the country’s largest lender, disappointing investors with its annual profit in August.
Reporting by Ambar Warrick in Bengaluru; editing by Richard Pullin