(Australia) – Australia’s fourth ranking ANZ Banking Group has downgraded its 2002-3 earnings forecast from 10 to 8 percent, blaming a A$27 million hit on its credit card business.ANZ chief John McFarlane revealed that an “under-accrual” of loyalty points for holders of the Qantas ANZ and Qantas ANZ Business One card would cost A$27 million in a blunder which has seen both the bank’s head of card issuing and the chief financial officer of the consumer finance business step aside.
Jenny Fagg has been appointed the new head of card issuing, and a new CFO for consumer finance is being recruited.
ANZ also settled a dispute with the Australian Taxation Office (ATO), paying a less-than-expected A$262 million. Some observers had expected the bank to pay up to A$1 billion.