ANZ to pay back almost $560 million to customers

ANZ will cough up almost $560 million to compensate customers who have been ripped off after its CEO admitted the bank took too long to act. This is what it means for you.

Banking giant ANZ’s profits are about to take a massive half-a-billion hit to compensate customers who have been ripped off.

It includes customers impacted from fees for no service and those incorrectly charged on products including home loans, savings accounts and financial advice from its wealth management arm.

It dates back to issues with products as far back as the past decade.

The bank today revealed its upcoming annual results will be significantly impacted by remediation costs that have amassed to $559 million (after tax).

Consequently ANZ’s New Zealand-listed shares were put into a trading halt given their stock exchange was already trading for the day.

Banking giant ANZ’s profits are about to take a massive half-a-billion hit to compensate customers who have been ripped off. Picture: Hollie Adams

The Melbourne-based bank issued a statement saying the remediation included “historical matters” and also “existing customer compensation programs and associated costs”.

The ANZ’s ASX-listed shares have not been impacted.

During the financial services’ Royal Commission ANZ chief executive officer Shayne Elliott said the bank would have to compensation two million accounts where customers had been ripped off by the bank.

He also acknowledged during the commission the bank had taken too long to discover, report and compensate customers.

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The bank has already made $928 million in pre-tax provisions over the past two full financial years and requested the halt from the NZX.

ANZ’s chief financial officer Michelle Jablko said in a statement the remediation bill will impact “both customers and shareholders”.

“We are well progressed in fixing issues and have a dedicated team of more than 500 specialists working hard to get any money owed back to customers as quickly as possible,” she said in a statement.

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