ANZ has announced that its first half 2021 cash profit will be affected by several significant items. The bank reported a $135 million after-tax loss from AMMB Holding Berhad due to goodwill impairment recognized by AmBank as of March 31, 2021. This does not impact ANZ's Common Equity Tier 1 (CET1) capital.
Additionally, ANZ disclosed a $251 million after-tax write-down of goodwill related to the ANZ Share Investing business. This move is part of the bank's ongoing simplification strategy and also does not affect CET1 capital. Furthermore, there are $108 million in additional customer remediation charges and $63 million in restructuring charges and other smaller divestment impacts.
These announcements add to previously advised items during the half-year period. These include a $48 million after-tax settlement for a class action against ANZ in the United States from 2016, along with related legal costs. There is also a $212 million after-tax equity accounted loss from AmBank concerning an agreed settlement with the Malaysian Ministry of Finance announced on March 1.
Overall, these factors will result in an aggregate impact of $817 million on ANZ’s first half 2021 cash profit after tax, which equates to approximately five basis points of CET1 capital.
The recurring effect of the new lease accounting standard adopted on October 1, 2019, has been removed from previously reported large/notable items as comparative periods for 2020 are now presented consistently with the March 2021 half.