Westpac Banking Corporation (ASX:WBC) says $1.1 billion will be added to its first half statutory net profit through tax consolidation thanks to its takeover of St George.
The adjustment will add 40 basis points to Westpac’s capital ratios, spread over the next four years.
The adjustments won’t alter the bank’s cash profit and forms the basis for shareholder dividends.
The changes mean the cost of the St George takeover was 15 per cent lower than originally stated.
Westpac generated a $6.4 billion net profit in the year to September 30, 2010.
