Australia's Westpac flags $870.4 million hit to second-half cash earnings

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Australia's Westpac expects $870.4 million hit to second-half cash earnings

said on Monday it would take an $870 million hit to cash earnings in the second half, due mostly to write-downs in the value of its life insurance business and the additional costs of a record fine.

The announcement, one week before its full-year results and dividend announcement are due, added uncertainty about the ability of the country’s second-largest bank to resume investment payouts. Credit Suisse said the separate write-downs and provisions were already expected by analysts, following the A$1.3 billion settlement announced last month for allowing illicit payments, for which the lender set a further A$415 million aside.Westpac this year became the only one of Australia’s four major banks to slash dividend payments in the first half of the year, as it took the largest bad-debt provisions of all majors for possible losses in the aftermath of the coronavirus pandemic.

 

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