Why is the ANZ share price underperforming other ASX 200 banks today?

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is underperforming on Monday.

In early afternoon trade, the banking giant’s shares are trading flat at $25.55.

This compares to a 1.75% gain by the ASX 200 index this afternoon.

It also means that the ANZ share price is underperforming the rest of the big four banks, which are all up around 1% on Monday.

Why is the ANZ share price underperforming?

The softness in the ANZ share price today has been driven by the release of an update on the bank’s full year results after the market close on Friday.

According to the release, the company is expecting its second half statutory and cash profit to be impacted by a number of large/notable items.

In total, these notable items will result in an after tax charge of $113 million, which is the equivalent to ~2 basis points of CET1 capital at level 2.

What are the charges?

Management advised that these charges include a customer remediation charge of $43 million after tax.

While ANZ highlights that its remediation program is approaching completion, the charge in the half relates to revisions to a small number of customer remediation provisions and remediation program costs.

There is also a restructuring charge of $37 million after tax and an after tax charge of $33 million comprising the impact of business divestments or closures during the period, lease modifications, and merger and acquisition related costs.

Investors won’t have long to see what these charges mean for its results. ANZ is scheduled to release its FY 2022 results later this week on Thursday morning.

The post Why is the ANZ share price underperforming other ASX 200 banks today? appeared first on The Motley Fool Australia.

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More reading

• Is the ANZ share price a buy ahead of next week’s full-year results?
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Own ANZ shares? Here’s what to expect from the bank’s FY22 results next week
• What’s driving the ANZ share price today?
• Top broker says ‘we struggle to see CBA underperforming peers’. Here’s why

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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