(Adds details on provisions, deferrals in home loans)
Aug 19 (Reuters) - Australia and New Zealand Banking Group Ltd ANZ.AX said on Wednesday it would pay an interim dividend and set aside an additional A$500 million ($362.20 million) to cope with the economic fallout from the COVID-19 pandemic.
Australia's No. 4 lender by market value said it would pay an interim dividend of 25 Australian cents per share, compared to 80 Australian cents in the same period last year.
The lender deferred a decision on the payout in April, after regulators earlier this year asked banks to consider freezing payments due to the economic uncertainty, but later relaxed the guidance. topped up its quarterly provision charge to account for additional risks due to deferrals and higher risk segments in its commercial portfolio in Australia and New Zealand, adding to the A$1.67 billion in the first-half.
In Australia, the bank said about 84,000 payment deferral plans were in place for home loan accounts as of July 31, valued at A$31 billion and representing 9% of its home loan accounts in the country.
ANZ added more pain was yet to come.
"You only need to look at the reintroduction of community lockdowns in Victoria and Auckland to realise we all still have a way to go before this virus is behind us," Chief Executive Officer Shane Elliott said.
The company also reported a third-quarter cash profit from continuing operations of A$1.50 billion. ($1 = 1.3805 Australian dollars)