ANZ preview of one-off items
Lest anyone forget that ANZ has been busy selling out of non-core businesses, well in advance of is half-year results announcement ANZ Group released information, ostensibly "to assist market participants preparing to analyse the group's financial performance".ANZ announced two separate wealth business transactions in 2017:• sale of the OnePath pensions and investments and aligned dealer groups business to IOOF Holdings Limited on 17 October; and• sale of the life insurance business to Zurich Financial Services Australia on 12 December.In today's 1H18 results announcement ANZ is expected to classify these businesses as 'discontinued operations' in accordance with accounting standards, and show them separately from the rest of the operations of ANZ. Prior period comparative results will be restated to reflect this.The group said, in a release ahead of today's results, that assets and liabilities under 'discontinued operations' have been reclassified as at 31 March 2018 as held for sale and measured at the lower of their carrying value and fair value less costs to sell. Consequently, a A$632 million loss has been recognised, comprising a $277 million net loss. The retained wealth businesses - ANZ Lenders Mortgage Insurance, ANZ Share Investing, distribution of General Insurance products and ANZ Financial Planning - will be disclosed separately within 'profit from continuing operations'. The profit for these retained businesses in FY17 was $95 million before group elimination adjustments.The group has incurred around $80 million in restructuring charges within cash profit in 1H18; this compares to charges of $26 million and $36 million in 2H17 and 1H17, respectively. "In large part, the 1H18 charges relate to the implementation of agile ways of working in the Australia Division," ANZ stated. "Legal and other costs" relating to the royal commission into banking and financial services misconduct are currently expected to be in the range of $50 million for the year ending 30 September 2018. They totalled $16 million in 1H18. ANZ said it was "committed to engaging with the inquiry in an open, constructive and transparent manner..."Consistent with the group's practice in FY17, ANZ will disclose a summary of large or notable items, included within the cash profit of its continuing operations.