Westpac flags $1.2b hit to earnings on misconduct costs, write-downs

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Westpac has flagged a $1.2 billion hit to earnings caused by write-downs across its insurance businesses, a growing remediation bill and mounting costs related to the landmark legal case over anti-money laundering law breaches | CharlotteGriev1

Add articles to your saved list and come back to them any time.Westpac has flagged a $1.2 billion hit to earnings caused by write-downs across its insurance businesses, a growing remediation bill and mounting costs related to the landmark legal case over anti-money laundering law breaches.

The losses were partly offset by an increased valuation of its holding of buy now, pay later platform Zip Co by $303 million, whichWestpac has flagged a $1.2 billion hit to earnings ahead of its full-year results next week. Westpac had initially put aside $900 million for the penalty but agreed to pay a higher price due to the serious and systemic nature of the breaches that failed to properly monitor and report suspicious payments, some linked to child abuse in South-East Asian countries.It comes as the prudential regulator threatens

Morningstar banking analyst Nathan Zaia said the write-downs were further evidence that banks should simplify operations. "The write-downs are cementing or reinforcing how much shareholder capital has been put to the wall with these investments outside of banking," he said.

 

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CharlotteGriev1 They wont take the hit...its customers will, all while the fat pigs in the board room snort from trough while patting themselves on the back saying how great they are.

CharlotteGriev1 They won't even notice...

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