(Reuters) - Australia and New Zealand Banking Group ANZ.AX said on Tuesday it expects to take an after-tax hit of A$528 million ($376.41 million) to its cash profit in the second half, primarily due to remediation costs.
The announcement from Australia’s fourth-largest bank, just two days before its full-year results are due, reflects continued pressure on bank margins amid record-low interest rates and credit losses due to the pandemic.
The A$528 million hit to cash profit also includes charges related to changes to the application of its software amortization policy and a write-down of goodwill in ANZ’s Pacific business, the bank said.
In aggregate, these items would have a 5 basis point impact on its common equity tier-one capital ratio.
Westpac Banking Corp WBC.AX has said it would take an $870 million hit to cash earnings in the second half, while National Australia Bank NAB.AX also warned of an $188 million charge for the same period last week.
ANZ will report full-year results on Oct. 29.
Reporting by Shriya Ramakrishnan in Bengaluru, Editing by Sherry Jacob-Phillips
Our Standards: The Thomson Reuters Trust Principles.