ANZ shares drop on Suncorp deal profit hit
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More news: Shares in ANZ Banking Group were down 0.8% at $31.47 after the lender outlined a $196 million profit hit due to an accounting adjustment related to its $4.9 billion acquisition of Suncorp Bank.
The charge comprises an accelerated amortisation charge of $36 million, and a credit impairment charge of $244 million for provisions for expected credit losses, ANZ said.
ANZ to take $196 million profit hit on Suncorp acquisition
The news: The ANZ Banking Group will take an after-tax charge against its second-half cash profit for one-off accounting-related adjustments related to its acquisition of Suncorp Bank.
The numbers: The group said it will take a total hit of $196 million on its second-half statutory and cash profit due to the accounting adjustment, comprising an accelerated amortisation charge of $36 million, and a credit impairment charge of $244 million for provisions for expected credit losses.
There will also be a net 2 basis points reduction in ANZ’s Common Equity Tier 1 Capital ratio.
The context: ANZ said the accounting related charges had no impact on the assessed value of the acquired Suncorp bank business or the purchase price paid. The big four lender will present Suncorp Bank as a separate division when it reports full-year results on 8 November
ANZ completed the $4.9 billion acquisition of Suncorp Group's banking arm earlier this year after it was cleared by the Australian Competition Tribunal and received the green light from federal Treasurer Jim Chalmers.
The source: ASX announcement
