ANZ Bank’s share price is expected to come under pressure this morning after the company issued a profit warning last night.

In an ASX filing, the company signalled that its cash and statutory profit for the six months to the end September would be crunched by after-tax charges totalling A$528 million.

Software amortisation and additional customer remediation costs account for the bulk of the earnings hit.

“Remediation charges recognised in the second half of 2020 will be $188m (after tax), largely related to an acceleration of remediation programs and product reviews across the group,” the bank told the ASX.

“Changes to the application of ANZ’s software amortisation policy resulted in a $138 million (after tax) charge being recognised in the second half of 2020.

“These changes were made to reflect the increasingly shorter useful life of various types of software assets caused by rapidly changing technology and business requirements.”

ANZ’s bottom line will also be eroded by write-downs to goodwill in the bank’s Pacific business ($50 million) and New Zealand operation ($27 million).

Changes to the accounting treatment of ANZ’s investment in Indonesia’s PT Panin Bank will wipe $68 million from earnings.

Before last night’s announcement, analysts had expected the group to report full year cash earnings in the range of $2.5 billion to $2.7 billion.

GoldmanSachs analyst Andrew Lyons had also forecast ANZ to pay a final dividend of 40 cents per share.

ANZ chief executive Shayne Elliott is scheduled to unveil the full year results on Thursday.