Westpac earnings to reduce by $1.22b
Westpac’s 2H20 cash earnings will be reduced by $1.22 billion with $415 million (after tax) accounting for AUSTRAC matters, the bank announced to the Australian Securities Exchange (ASX).
The bank said it had increased its penalty provision by $400 million in 2H20, in addition to the $900 million raised in 1H20. There was another $20 million in costs of remediating identified issues in 2H20, along with legal costs, including AUSTRAC’s legal costs of $4 million.
Another $568 million was for the write-down of goodwill and intangibles associated with Westpac Life Insurance Services and its Auto Finance business along with the write-down of capitalised software.
An increase in provisions for customer refunds, repayments, associated costs, and litigation provisions came to $182 million.
A further $55 million was reduced from earnings from asset sales and revaluations. This included the revaluation of life insurance liabilities and a loss on the agreed sale of its vendor finance business.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
