KUALA LUMPUR (April 30): Australia and New Zealand Banking Group (ANZ) said its profit for the first half of financial year 2021 (1HFY21) will be impacted by A$135 million (about RM430.9 million) of equity account losses from AMMB Holdings Bhd (AmBank).

In a statement to update on large/notable items in its 1HFY21 results today, the group said this is related to goodwill impairment recognised by AmBank as at March 31, 2021.

Meanwhile, A$251 million is relating to write-down of goodwill attributable to the ANZ Share Investing business as a result of that business being reclassified as held-for-sale, reflecting a continuation of the bank’s simplification strategy.

Other impacts on ANZ’s 1HFY21 cash profit include A$108 million of additional customer remediation charges, and A$63 million comprising restructuring charges and other smaller divestment impacts.

ANZ said these large or notable items announced are in addition to those previously advised during the half, namely A$48 million in respect of an agreement to settle a class action brought against ANZ in the US during 2016, and related legal and other costs as well as A$212 million of equity accounted losses from AmBank relating to an agreed settlement with the Ministry of Finance (MoF).

“In aggregate, ANZ’s first half of 2021 cash profit after tax will be impacted by A$817 million, equivalent to about five basis points (bps) of CET1 (common equity tier 1) capital,” said ANZ.

At the time of writing today, AMMB was down four sen or 1.32% at RM2.98, bringing it a market capitalisation of RM9.88 billion.