The big four bank announced that its first-half earnings would be reduced by almost $300 million as it added significantly to its remediation costs.
In a statement, Westpac said its cash earnings for the first half of the 2021 year would be reduced by $282 million after tax due to “notable items” including additional provisions for customer refunds, payments, associated costs and litigation expenses of $220 million.
Further, the bank said costs associated with ending its platform relationship with IOOF, which was announced at the end of 2020, would total $56 million.
Write-downs of capitalised software and other intangibles, and of goodwill related to its lenders mortgage insurance business that the bank had also recently offloaded, would cost $56 million and $84 million respectively.
The news comes following the bank’s strong first-quarter result that saw earnings increase by 54 per cent.
Westpac will release its first-half results on 3 May.