The Australian parent of ANZ bank will take a big financial hit after increasing the amount it has to refund to customers.

Its annual remediation costs would be $A682 million ($NZ730m), after wiping $A559m worth of refunds to customers from its cash profit in the second half of the financial year ended in September.

The refunds follow internal reviews of its existing and old products found customers had been overcharged in fees and interest payments.

The review followed Australia’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that found illegal activity, including banks charging fees for no service.

“We recognise the impact this has on both customers and shareholders,” ANZ chief financial officer Michelle Jablko said.

“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.”

The bank was continuing to review its products to identify any further refunds to customers.

This article was originally published on RNZ and re-published with permission.

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