ANZ, like all other major banks in Australia, was accused of charging its advice, super and retail customers fees for services the bank knew it could not receive. Like its peers, ANZ has also been reviewing the files of advice clients to determine whether the advice they received was appropriate.
ANZ is expected to release its full year results later this month.
ANZ’s provision comes just days after National Australia Bank expanded its provision for customer remediation by more than $1 billion, taking its total refund and compensation bill to $2 billion.
ANZ’s remediation is broken down into two parts. The first $485 million before-tax provision related to its continuing businesses. ANZ has also set aside $166 million before tax for repayments to customers in its discontinued businesses. ANZ sold its advice arm to IOOF last year. It is in the process of trying to sell its superannuation arm to the wealth manager.