Westpac warns $954m profit hit from one-off impairments

It is also hit with one-off costs from the sale of its insurance arm and specialist business.

Westpac has revealed that its upcoming profits for the second half of 2021 are taking a $954m (A$1.3m) hit due to one-off charges, largely driven by a write-down of assets in its institutional banking arm.

In a press statement, the Australian banking giant outlined “notable items” including an over $700m (A$965m) write-down of assets in Westpac Institutional Bank (WIB) following their annual impairment tests. Around $126.2m (A$172m) will also be set aside for customer refunds, payments, associated costs, and litigation provisions.

Another $196m (A$267m) is related to the previously announced separation and transaction costs, as well as deferred tax asset write-off, related to the sale of Westpac Life Insurance Services.

Finally, more than $17m (A$24m) are costs associated with the divestment of the Group’s Specialist Businesses.

Westpac will announce its full-year results on 1 November.