Wealth Business Sales To Bite Into ANZ Result
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The ANZ has joined the National Australian Bank (see separate story) in preparing investors for a big write down and multi-million dollar series of one off losses in its interim profit announcement next week (May 1).
The ANZ told the ASX yesterday that it would book a loss of $632 million on the divestment of two of its wealth businesses last year, which will be reflected in its half-year results.
The bank 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 $355 million, the bank said in a statement, and a $277 million loss on measuring the fair value of asset and liabilities.
The bank also revealed it will be making a further $80 million provision for restructuring costs in the interim result.
And it also said there would be a net gain of $168 million from divestments in the half.
The net loss on one offs looks like being $593 million for the half year with the estimated legal costs relating to banking Royal Commission inquiry into the banking sector. Those costs are expected to be around $16 million for the March half and $50 million for the full year.
The bank said in yesterday’s statement “ANZ is unable to predict the outcome of the inquiry or its impact on the bank or broader industry,” the lender said.
Unlike the NAB though the ANZ made no assurances about dividends. The shares rose 0.9% to $26.77.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.