ANZ has disclosed that its first half 2022 statutory and cash profit will be affected by several significant items, resulting in a net after-tax charge of $43 million. The bank noted that this would have minimal impact on its CET1 capital.
A net after-tax gain of $205 million was recorded from divestments and business closures during the period. This was mainly driven by the gain from the sale of the Merchant Acquiring Business, which resulted in a 49% interest in a new ANZ Worldline Payment Solutions partnership. "See ANZ announcements of 15 December 2020 'ANZ enters joint venture with Worldline' and of 1 April 2022 'ANZ commences joint venture with Worldline'."
There was also a tax charge of $126 million related to withholding tax on a dividend payment from ANZ Papua New Guinea. A corresponding capital injection into ANZ Papua New Guinea was made, equivalent to the dividend minus withholding tax. This move aimed to rebalance capital positions within the group following APRA's changes in capital requirements for subsidiaries. "See ANZ announcement of 15 October 2019 'APRA – subsidiary capital investment treatment update.'"
An after-tax charge of $123 million was recognized concerning customer remediation, addressing increased program costs and revised estimates for customer remediation predominantly within the Australia Retail and Commercial division.
Additionally, there was a net after-tax gain of $1 million, which included restructuring charges, results from divested businesses, and a litigation settlement.
The relevant large/notable items (continuing operations) templates are set to be presented in ANZ’s First Half 2022 Consolidated Financial Report & Dividend Announcement.
ANZ plans to announce its First Half 2022 result on Wednesday, May 4, 2022.