Yesterday ANZ warned:
Today there are other warnings, via Banking Day:
ANZ Bank is under pressure to cut its final dividend after it revealed another blowout in customer remediation costs.
…ANZ yesterday came under fire for not giving precise details on the nature of the recently identified remediation cases or any information on how many customers were affected.
The bank only disclosed that most of the new remediation expenses related to overcharging of retail and commercial banking customers on fees and interest.
…A bank spokesman told Banking Day after the disclosure was made to the ASX that more details about the provision would be revealed at the annual profit announcement on 31 October.
The expenses blowout has conditioned bank analysts to expect each of the major banks to absorb more remediation hits in 2020.
Evans & Partners analyst Matt Wilson has lowered his 2020 earnings forecasts for the sector in light of ANZ’s latest disclosure.
“We continue to expect that conduct will remain a lingering drag for the sector, and our numbers already capture another $2,150 million in 2020 – $500m for ANZ,” Wilson told clients in a report.
“NAB is unlikely, in our view, to end up with the most conduct charges, and hence we expect the sector to play catch up in time.
…In its filing ANZ left open the possibility of more big remediation bills after noting that its 500 member remediation team had not completed reviews of products.
I would buy ’em if you paid me.