ANZ has become the first of the "Big Four'' banks to formally take the axe to its dividend as rising bad debts and impairment charges caused by the global financial crisis cuts a swathe through its profits. The bank, which currently ranks number four by stock market capitalisation out of the majors, will slash its full year dividend by 25 per cent in order to bolster its balance sheet given the need to make further provisions against its earnings. That will see the 2008 pay-out of $1.36 a share trimmed by around 34 cents by the time ANZ reports its full year results at the end of October. Such a move will save the bank an estimated $500 million. The first sign of the extent of the dividend cut will come when the bank releases its first half year results for the six months ending March 31 on April 29. ANZ shares ended the day up 55 cents, or 4.4%, at $13.05, while the broader market gained 0.5%.