April 23, 2018 / 1:05 AM / a year ago

ANZ to book $484 million charge on wealth business sales

An ANZ bank logo is pictured in Sydney, Australia April 23, 2018. REUTERS/Edgar Su

(Reuters) - Australia and New Zealand Banking Group (ANZ) said it would book a loss of A$632 million ($484 million) on the divestment of two of its wealth businesses last year, which will be reflected in its half-year results.

It sold its OnePath pensions and investments business to IOOF Holdings in October and its life insurance business to Zurich Insurance Group in December.

The loss includes future separation and costs of completing the transactions of A$355 million, the bank said in a statement.

ANZ also said legal costs relating to a Royal Commission inquiry into the banking sector were expected to be around A$50 million for the 2018 fiscal year, including A$16 million in the first half.

The Royal Commission is a judicial inquiry into the Australian financial sector which seeks to restore confidence in the sector after widespread allegations of misconduct.

“ANZ is unable to predict the outcome of the inquiry or its impact on the bank or broader industry,” the lender said.

ANZ will report half-year results on May 1.

($1 = 1.3060 Australian dollars)

Reporting by Rushil Dutta in Bengaluru; Editing by Stephen Coates and Edwina Gibbs

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