(Reuters) - Australian shares ended near a four-month low on Monday, with ANZ sliding as the bank counted the costs of poor banking practices on its earnings, and material and energy stocks also dragged on the broader market.
The S&P/ASX 200 index <.AXJO> dropped 1.4 percent to close at 6,100.3 points, its lowest since June 15, after adding 0.2 percent on Friday.
The financial sector <.AXFJ> fell 1.3 percent, led by Australia and New Zealand Banking Group <ANZ.AX> which closed down 2.6 percent and also near a four-month low.
ANZ, the country's No.3 lender, said it would take a A$711 million ($501 million) hit to full year profit due to higher costs, including compensation for customers stung by poor bank practices.
Months of public hearings into financial industry misconduct has weighed on the banking sector and forced the banks to set aside cash to restructure their businesses, pay for legal costs, defend lawsuits and compensate customers.
The remaining three of the Big Four banks were all in the red, down between 1.3 percent and 0.9 percent.
Material stocks were hit by a slump in aluminium prices after a Brazilian court approved emergency waste measures that could allow the world's biggest alumina refinery to resume production. [MET/L]
Alumina Ltd <AWC.AX> and South32 <S32.AX> were among the biggest losers, down 6.9 percent and 5.4 percent, respectively.
Global miners BHP <BHP.AX> and Rio Tinto <RIO.AX> also came under pressure, falling 2.8 percent and 1.6 percent.
After the United States announced it may grant waivers to sanctions on Iranian oil exports, which are scheduled to take effect next month, Brent crude oil prices fell 1 percent, dragging the Australian energy index <.AXEJ> lower. [O/R]
Beach Energy <BPT.AX> and Santos Ltd <STO.AX> fell 5.9 percent and 2.1 percent.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> fell 0.7 percent or 67.77 points to finish the session at 9,147.1.
Locally-listed shares of ANZ <ANZ.NZ> fell 2.4 percent, while Kathmandu Holdings <KMD.NZ> was the biggest percentage loser, down 2.8 percent.
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Darren Schuettler)
