ANZ warns of $1.1 billion impact in first results under Matos
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The news: ANZ has warned several significant items will impact the first set of results to be released by new chief executive Nuno Matos, flagging a net after tax charge of $1.109 billion in its upcoming second half results.
The numbers: The 4,500 job cuts implemented by Matos in September will have a final pre-tax charge of $585 million ($414 million after tax), up from previous guidance of $565 million.
There is also the $240 million settlement between the bank and ASIC – subject to federal court approval – as well as another $31 million of additional associated costs.
The accelerated migration of Suncorp Bank will incur a pre-tax cost of $97 million ($68 million after tax) due to existing contracts that extend beyond the new timelime.
The closure of Cashrewards will result in a $78 million writedown of goodwill, while the bank is also recognising a $285 million impairment of its equity account investment associated with its PT Bank Pan Indonesia TbK. Neither charge will impact the bank's tier one equity.
The context: ANZ will hand down its second half results on Monday 10 November. They will be the first set to be released by Matos since he took over the top job on 12 May.
Since then, the chief executive has been overhauling ANZ's strategy, exiting investments that he believes lack strategic or economic rationale, simplifying the bank's operations, and cutting jobs in an effort to arrest long-running underperformance.
The source: ASX
