Australia and New Zealand Banking Group said on Monday that it would record a financial impact of A$212 million ($163.41 million) with its first half results due to its investment in Malaysia's AMMB Holdings Berhad (AmBank).
AmBank will pay the Malaysian government $700 million to settle claims in relation to its role in a massive financial scandal in which $4.5 billion was allegedly stolen from 1Malaysia Development Berhad, a state fund set up by former prime minister Najib Razak, it said on Friday.
Najib was found guilty of corruption and money laundering last year over the transfer of millions of dollars linked to a 1MDB unit into his AmBank accounts between 2014 and 2015. He denies wrongdoing and has filed an appeal.
ANZ, Australia's fourth-largest lender, currently owns a 24% stake in AmBank and said that the impact would reduce the carrying value of its interest in AmBank to A$850 million from A$1.05 billion.
ANZ said the impact on its CET1 capital position would be neutral.
($1 = 1.2974 Australian dollars)
(Reporting by Arundhati Dutta in Bengaluru; editing by Jonathan Oatis and Sam Holmes)
