Westpac Flags A$173 Million Fiscal Year 2023 Profit Hit

By Alice Uribe

Westpac Banking Corp has flagged that the company's reported net profit after tax for fiscal 2023 will be cut by 173 million Australian dollars (US$109.21 million) due to a range of notable items.

The biggest driver of the profit loss for the 12 months through September was an increase in provisions for customer refunds, repayments, associated costs and litigation at A$176 million.

This was followed by restructuring costs associated with organizational simplification and the discontinuance of specialist businesses, resulting in a A$140 million loss.

The write-down of assets and costs related to reducing Westpac's corporate and branch footprint saw a A$87 million loss recognized, while unrealized fair value gains and losses on economic hedges and net ineffectiveness on qualifying hedges resulted in a A$26 million loss.

Still, there was a A$256 million boost from the sale of the Advance Asset Management business.

The net impact of these notable items will reduce the Common Equity Tier 1 capital ratio by 4 basis points, said Westpac.

Still, Westpac said that the notable items for FY 2023, were "significantly lower than FY 2022 Notable Items of A$874 million."

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

October 25, 2023 17:44 ET (21:44 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.