The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is pushing higher today.
In afternoon trade, the banking giant's shares are up 0.5% to $27.23.
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What's going on with the ANZ share price today?
The ANZ share price is rising today after the bank released an update on notable items that will be included in its upcoming half year results.
According to the release, ANZ's first half FY 2022 statutory and cash profit will be impacted by a number of large/notable items with a net after tax charge of $43 million.
Pleasingly, management notes that this will have a minimal impact on its CET1 capital.
What are the items?
There were a total of four items that led to this net after tax charge of $43 million.
The first is a positive net after tax gain of $205 million relating to divestments and business closures during the period. This was primarily driven by the gain on sale of the Merchant Acquiring Business in exchange for a 49% interest in a new ANZ Worldline Payment Solutions partnership.
Offsetting this will be a tax charge of $126 million relating to withholding tax on a dividend payment from ANZ Papua New Guinea. ANZ notes that a capital injection was made into ANZ Papua New Guinea equivalent to the dividend, net of withholding tax. This was done in order to rebalance capital positions within the group in response to APRA's changes in the capital requirements for subsidiaries.
Another after tax charge of $123 million relates to customer remediation. This covers increased program costs and revised estimates to customer remediation predominantly in the Australia Retail and Commercial division.
Finally, a modest net after tax gain of $1 million is included and comprises restructuring charges, divested business results, and a litigation settlement.
Judging by the ANZ share price performance today, the market appears to see this $43 million charge as a good result. Especially considering that a year earlier the bank recorded a charge of $817 million.
