ANZ slings profit into the blender
ANZ slipped out a profit warning on Friday, one that will carve A$360 million from its full year profit - an amount equal to around one month's profit (using its half-year result as a guide).The bank will announce its 2016 full year financial results on Thursday, with some late decision making informing what the bank styled as "additional specified charges."?The bank sliced these into four, with a "derivative credit valuation adjustment" of $168 million in ANZ's institutional markets business the most prominent.The bank explained it adopted an "enhanced methodology for calculation of the CVA," one also described as a "refined methodology [that] makes greater use of market credit information, more sophisticated exposure modelling and one that is aligned with leading market practice."ANZ said $25 million relates to movements in the CVA for the current 2016 financial year, with the remainder "related to a once off adjustment for prior periods to mark to market the current derivative portfolio."A "restructuring charge" of $100 million is the second main item and follows a restructuring charge crammed into the bank's March 2016 half year result. This second one is rationalised to "support the evolution of the Group's strategy, underpinning further productivity through reshaping the workforce."Lesser items in the list of ANZ's specified charges include "changes in the application of the group's software capitalisation policy and pro forma adjustments for the Esanda Dealer Finance divestment."This week's full year results will be the first to bear the input of Michelle Jablko, the new chief financial officer who joined the bank in the middle of the year.