ANZ will take a hit on its earnings in its coming half-year results after AMBank Group agreed on a settlement with the Malaysian government.
AMMB Holdings will pay 2.83 billion Malaysian ringgit ($5.41 billion) in a settlement regarding its involvement in 1MDB-related transactions, according to a statement from the nation’s finance ministry.
«[The payment is for] all outstanding claims and actions in relation to the AmBank Group's involvement in the 1MDB matter,» the statement said without specifying any wrongdoing.
ANZ Earnings Hit
Following the AmBank announcement, Australia’s ANZ also issued its own statement noting that it will take a 212 million Australian dollar ($165 million) cut in the carrying value of its 24 percent stake in the Malaysian bank.
ANZ’s upcoming half-year results will take a hit as a result of the writedown but its overall capital position will not be affected as it already holds 100 percent capital against its AmBank stake.
