Westpac on Monday announced that its reported net profit and cash earnings in the second half of 2022 will be reduced by $1.3 billion (after tax) due to notable items, including its loss of $1.1 billion on the sale of Westpac Life Insurance Limited.
Other notable items flagged by the big four include expenses and revaluations associated with the sale of Advance Asset Management and successor funds transfer of BT’s personal and corporate superannuation funds; tax benefits from the sales of the bank's motor vehicle and vendor finance businesses; expenses and write-downs associated with reducing its corporate and branch footprint; and an increase in provisions for customer refunds, associated costs and litigation costs.
“The net impact of these notable items on our Common equity Tier 1 capital ratio was a positive 12 basis points. The impact was positive as the completion of the life insurance sale added 17 basis points while the other notable items had a 5 basis point impact,” Westpac said.
Westpac is scheduled to announce its full-year 2022 results on Monday, 7 November 2022.
The big four reported cash earnings of $3.1 billion in the first half of the 2022 financial year — a 71 per cent increase on the prior corresponding period (pcp).
During that period, statutory net profit also surged by 63 per cent pcp to reach $3.28 billion.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
