Westpac to take 9-figure profit hit

Westpac to take 9-figure profit hit


By Mike Wood

Westpac to take 9-figure profit hit

Westpac has announced that its first half profits will take a $282 million after tax hit as it braces for refunds and litigation. Provisions for customer refunds, payments and court action have been increased by $220 million, while a number of writedowns have also been announced.

Capitalized software and other intangibles          $115 million
Lender’s Mortgage Insurance sale goodwill         $84 million
Accounting loss on Westpac Pacific sale           $113 million

On the plus sides for the big four bank, its investments in Coinbase and the sale of Zip Co. will both add to the bank’s figures.

Westpac’s 2020 figures in a nutshell:
Statutory net profit         $2.3 billion (down 66%)

Cash earnings                    $2.6 billion (down 62%)

AUSTRAC fine                    $1.3 billion
Payments to customers $280 million

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