ANZ Bank Takes A$360 Million Charge, Including Some Job Cutsby
Australia & New Zealand Banking Group Ltd., the country’s third-biggest bank, will take a $360 million ($273 million) charge against full-year profit, including a provision for job cuts.
The charges include A$168 million from institutional markets revenue after the valuation methodology was changed, the bank said in a regulatory filing Friday.
It will take a further A$100 million restructuring charge, including an unspecified number of job cuts. The lender last week confirmed it was cutting about 30 jobs from its institutional banking unit.
“The restructuring charge represents the downward trend for staff numbers which we saw at the first half and flagged at the recent trading update,” ANZ spokesman Stephen Ries said in an e-mail.
There will also be charges as part of the group’s software capitalization program and adjustments as part of its sale of the Esanda Dealer Finance business in late 2015.
The bank releases full-year results on Nov. 3. Analysts are forecasting full-year cash profit of A$6.25 billion, down from A$7.22 billion last year. That would be the lowest cash profit in four years.