An Australia and New Zealand Banking Group Limited (ANZ) logo is displayed in a branch window in Sydney, Australia, September 9, 2025. REUTERS/Hollie Adams

By Scott Murdoch and Rishav Chatterjee

(Reuters) -Australia's ANZ Group on Friday said it would take a A$1.11 billion ($721.28 million) after-tax profit hit in the second half due to charges related to restructuring, staff cuts and a major regulatory settlement.

The lender, Australia's fourth-largest by market capitalisation, said it is streamlining its core business units and bolstering risk management after a number of regulatory run-ins.

The bank said the charges will reduce its common equity tier 1 capital ratio by 19 basis points.

The company's shares were down 0.9% on Friday, while the S&P/ASX200 was up 0.4%.

ANZ said it would incur A$414 million in after-tax charges on redundancies and a A$264 million post-tax cost tied to settlements with the Australian Securities and Investments Commission to resolve several issues involving its markets and retail businesses.

The group will book a further A$78 million after-tax charge to wind down its Cashrewards business, which Chief Executive Nuno Matos has said was not a strategic priority.

Matos, the former HSBC personal banking and wealth chief, took ANZ's top job in May, replacing long-serving Chief Executive Shayne Elliott.

One of his first moves was to say that 3500 jobs and 1000 contractor positions would be removed from the bank in the next year to cut costs and trim its workforce.

The firm will also book a A$285 million post-tax charge on its stake in PT Bank Pan Indonesia after reviewing the value of the investment.

The bank has been paring back its Asian footprint in recent years, pivoting toward its core operations in Australia and New Zealand while retaining select partnerships in the region.

Separately, ANZ said it would incur A$68 million in after-tax costs linked to the accelerated integration of Suncorp Bank, after completion of the A$4.9 billion acquisition.

In early October, Matos said the bank would target a 12% return on tangible equity by 2028, up from 10.3% in the past financial year, while aiming to achieve a target of 13% by 2030.

The company will report its full-year results on November 10.

($1 = 1.5389 Australian dollars)

(Reporting by Scott Murdoch in Sydney and Rishav Chatterjee in Bengaluru; Editing by Anil D'Silva and Thomas Derpinghaus)