ANZ today announced its second half 2020 Cash Profit will be impacted by an after tax
charge of $528m (approximately a 5 basis points impact on common equity tier one capital)
as a result of large notable items, including remediation costs and accelerated software
amortisation. The charge impacts Statutory Profit by a similar amount.
Remediation charges recognised in the second half of 2020 will be $188m (after tax), largely related to an acceleration of remediation programs and product reviews across the Group.
Changes to the application of ANZ’s software amortisation policy resulted in a $138 million (after tax) charge being recognised in the second half of 2020. These changes were made to reflect the increasingly shorter useful life of various types of software assets caused by rapidly changing technology and business requirements.
The remaining charges of $202m (after tax) include the write-down of goodwill in ANZ’s Pacific business, the impact of AASB 9 accounting changes on ANZ’s investment in PT Panin and restructuring charges.
The following tables are provided to illustrate the impacts of the above items to cash continuing profit after tax (versus prior comparable periods):
