Westpac profit tumbles 24% on compensation costs

Company News

by Anna Napoli

Westpac's (ASX:WBC) half-year profit has fallen by almost a quarter as the cost of customer compensation mounts amid weaker business conditions.

The bank's statutory net profit fell 24 per cent to $3.2 billion for the half-year to March 3.

Cash earnings dropped 22 per cent to $3.3 billion.

The bank paid out $617 million on major remediation and restructuring items including provisions for estimated customer refunds.

Westpac Group CEO Brian Hartzer says it's a disappointing result reflecting weaker business conditions and the bank dealing decisively with outstanding issues, including remediation and resetting its wealth strategy.

The bank's interim fully franked dividend of 94 cents per share is unchanged.

Shares in Westpac (ASX:WBC) closed 0.11 per cent higher at $27.44 on Friday

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.