(Adds details on writedown, background)
April 30 (Reuters) - Australia and New Zealand Banking Group ANZ.AX said on Friday its first-half cash profit would take an A$817 million ($634.89 million) hit largely from losses on its investment in a Malaysian bank that was involved in the 1MDB scandal.
ANZ, the country's fourth-largest lender, said it would take a further impairment charge of A$135 million on its 24% stake in AMMB Holdings Bhd AMMB.KL , having warned of a A$212 million write down in March.
AmBank said earlier this year it would pay the Malaysian government $700 million to settle claims in relation to its role in the scandal in which $4.5 billion was allegedly stolen from 1Malaysia Development Berhad (1MDB), a state fund set up by former prime minister Najib Razak. Australian bank also announced a A$251 million write-down on its share investment business, A$108 million for further customer refunds and a smaller amount toward restructuring. ($1 = 1.2868 Australian dollars)