ANZ books $360m in charges

Second half charges announced by ANZ will weigh on its full-year accounts when they’re released next week.

ANZ will deliver its full year earnings report on November 3.

ANZ has announced second half charges of $360 million that will weigh down its full-year accounts when released to the market next week.

Included among the charges is a $100m restructuring impairment, which the company (ANZ) said was made “to support the evolution of the group’s strategy, underpin further productivity through reshaping the workforce (and) reduce complexity and duplication.”

More details on the nature of the impairment will be provided next week.

ANZ also said it would alter the calculation of the derivative credit valuation adjustment (CVA), which determines the fair value of derivative instruments.

The tweak to methodology would take advantage of improved exposure modelling, but result in a charge of $168m recorded against its institutional markets unit.

ANZ said the CVA and restructuring impairments would serve as the key drivers of the $360m in one-off charges, with the remainder largely tied to the second half impact of previously announced changes to the application of the group’s software capitalisation policy and pro forma adjustments for the Esanda Dealer Finance sale.

The bank will deliver its full year earnings report on Thursday November 3.