ANZ (ASX:ANZ) share price on watch after revealing $129 million profit hit

Here’s what will be impacting this banking giant’s profits…
The post ANZ (ASX:ANZ) share price on watch after revealing $129 million profit hit appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be one to watch on Thursday.

This follows the release of an announcement by the banking giant after the market close.

Why is the ANZ share price on watch?

All eyes will be on the ANZ share price after it revealed a couple of large notable items that will impact its second half profits.

According to the release, the banking giant expects its second half statutory and cash profit for FY 2021 to be impacted by two charges totalling $129 million after tax. It notes that this is the equivalent of 3 basis points of CET1 capital at level two.

What are the charges?

The majority of the notable items relate to remediation charges. ANZ expects remediation charges of $113 million after tax in the second half. This reflects banking product reviews in the Australia Retail and Commercial division.

The remaining $16 million after tax is for unspecified restructuring charges.

While this may disappoint some shareholders, others may be relieved that it isn’t anywhere near as bad as what rival Westpac Banking Corp (ASX: WBC) recently announced.

Last week, Australia’s oldest bank revealed that its second half results would be hit by $1.3 billion of notable items.

This comprises $965 million for asset write downs, $172 million in additional provisions relating to customers refunds, $267 million for separation and transaction costs for the Westpac Life Insurance business, and $24 million for costs relating to other divestments.

The ANZ share price is up 23% since the start of the year. Shareholders will no doubt be hoping this announcement doesn’t stifle its impressive run.

The post ANZ (ASX:ANZ) share price on watch after revealing $129 million profit hit appeared first on The Motley Fool Australia.

Should you invest $1,000 in ANZ right now?

Before you consider ANZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ANZ (ASX:ANZ) share price gains amid cybersecurity audit rumours

2 ASX 200 dividend shares to buy now

Should you buy ANZ (ASX:ANZ) shares in October for the dividend yield?

Legal risk just increased for the Westpac (ASX:WBC) share price

The ANZ (ASX:ANZ) dividend yield is topping the big four ASX bank shares

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!