ANZ's customer remediation bill blows out to $1.1 billion

ANZ has informed shareholders that its second-half cash profit will be impacted by a staggering $559 million as it works to repay customers left short-changed by financial advice.

In a statement to the ASX, the bank said $405 million of the second-half provision is related to the refund of fees and interest following reviews of Australian retail and commercial products, while $154 million is due to its divested wealth business.

Over the past two financial years, ANZ's customer remediation program has now topped $1.104 billion.

ANZ's Chief Financial Officer Michelle Jablko said the bank had a dedicated team working on repaying customers who were given faulty or poor financial advice.

"We recognise the impact this has on both customers and shareholders," Ms Jablko said.

"We are well progressed in fixing issues and have a dedicated team of more than 500 specialists working hard to get any money owed back to customers as quickly as possible."

During the Royal Commission into Financial Services, ANZ CEO Shayne Elliott told Commissioner Kenneth Hayne that the bank was committed to paying hundreds of millions of dollars back to customers after five different errors each led to large numbers of customers being overcharged or not receiving agreed discounts or benefits in relation to their home loans.

"It is hundreds of millions of dollars when it is added up," Mr Elliott told the commission.

"Some of that is money that will go back to customers. That's theirs."

In May this year ANZ announced a statutory half year profit of $3.17 billion, down 5 per cent on the comparable period last year.