KUALA LUMPUR (Oct 27): Australia and New Zealand Banking Group Ltd (ANZ), which owns a 23.8% stake in AMMB Holdings Bhd (AmBank), said on Thursday (Oct 27) it had during the financial year ended Sept 30, 2021 recognised a A$347 million (RM1.06 billion) reduction in equity-accounted earnings after tax.
This comprised a A$212 million portion, which reflected ANZ's share of the settlement provision following AmBank's agreement with the Malaysian Ministry of Finance (MOF) to resolve 1Malaysia Development Bhd (1MDB)-related claims, besides another A$135 million which reflected ANZ's share of the impairment of AmBank's goodwill, according to notes accompanying ANZ's financial results for the financial year ended Sept 30, 2022.
ANZ, which has a presence in Malaysia since 1971 through its representative office here, said on its website that in 2007, it invested in a 23.8% stake in AmBank, one of the largest banking groups in Malaysia.
Meanwhile, AmBank in a Bursa Malaysia filing on Feb 26, 2021 said it had reached an agreement with the MOF for a sum of RM2.83 billion to be paid towards the full and final settlement in relation to all historical matters related to 1MDB.
Later on April 28, 2021, AmBank said in another filing that it had concluded the annual review of goodwill and other impairments, and that "two factors" that were absent in previous years were considered as part of the assessment.
The two factors were the adverse effects of Covid-19 on economic growth, and the RM2.83 billion settlement with the MOF.
As a result, a one-time impairment charge of RM1.94 billion was incurred in AmBank's financial results for the fourth quarter ended March 31, 2021, according to the group.
ANZ reports rise in cash profit for FY2022
Reuters reported that ANZ on Thursday (Oct 27) revealed a rise in annual cash profit for the financial year ended Sept 30, 2022, surpassing market expectations, as its home loan business improved and higher interest rates boosted margins in the second half.
Annual cash profit from continuing operations was A$6.52 billion. The bank proposed a final dividend of 74 Australian cents per share, compared with 72 cents for the previous year.