ANZ budgets A$559m for customer compo

ANZ Bank has already put aside 993 million before tax for remediation costs following Australia's...
ANZ Bank has already put aside 993 million before tax for remediation costs following Australia's banking Royal Commission.

ANZ says its second half 2019 cash profit will be impacted by $A559 million due to increased provisions for customer related remediation.

The remediation charge results from issues identified from past and present reviews, including those highlighted in Australia's banking Royal Commission.

ANZ chief financial officer Michelle Jablko said: "We recognise the impact this has on both 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."

The Australian-owned bank had already put aside A$928 million before tax to address remediation costs following the sector-wide abuses exposed by the Hayne Royal Commission.

Rival Westpac has also made provisions totalling A$1.4 billion while National Australia Bank, which owns the BNZ, recently set aside an extra $1.2b to refund customers for dubious insurance and financial advice.

ANZ split the remediation charges into A$405m for continuing operations and A$154m for discontinued operations.

This was largely related to product reviews in Australia Retail & Commercial for fee and interest calculation and related matters, ANZ said.

"These include historical matters recently identified during the period, as well as refinements to estimates of existing customer compensation programs and associated costs."

ANZ is due to report full-year profit later this month.

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