ANZ Flags A$1.1 Billion Second-Half Profit Hit From Restructuring And Compliance Costs

Australia's ANZ Bank anticipates a substantial $1.1 billion after-tax profit hit in the second half of fiscal 2025 due to restructuring costs, regulatory penalties, and other related charges. A major component of this charge is $414 million for staff redundancies tied to a plan to cut 3,500 jobs, which represents about an 8% reduction of its 43,000 global workforce. Additionally, the bank faces a $240 million penalty settlement with the Australian Securities and Investments Commission over bond trading data misreporting, as well as a $78 million write-down of its Cashrewards program goodwill and a $285 million impairment on its investment in Indonesia's PT Bank Pan Indonesia. Integration costs related to the acquisition of Suncorp Bank will add another $68 million in charges, reflecting accelerated merger expenses. Despite these setbacks, ANZ’s share price showed a slight increase following the announcement, and the bank plans to report full second-half results on November 10. These developments occur amid ANZ’s strategic focus on core operations in Australia and New Zealand while scaling back its broader Asian footprint.