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Australia's Westpac warns of $109 million hit to fiscal 2023 profit

Published 10/25/2023, 04:41 PM
Updated 10/25/2023, 06:26 PM
© Reuters. FILE PHOTO: A woman exits the ground floor of an office building with Westpac logo amidst the easing of the coronavirus disease (COVID-19) restrictions in the Central Business District of Sydney, Australia, June 3, 2020. REUTERS/Loren Elliott/File Photo
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(Reuters) - Australian lender Westpac Banking (NYSE:WBK) Corp said on Thursday it expects its net profit after tax in fiscal 2023 to decline by A$173 million ($109.11 million) due to certain one-off items, including the sale of its asset management business and write-down of assets.

The bank sees an increase in provisions for customer refunds and associated payments and restructuring costs, among others, in fiscal 2023. Westpac reported a net profit attributable of A$5.69 billion in fiscal 2022.

The company noted that the notable items recorded in fiscal 2023 are significantly lower than the notable items of A$874 million recorded in fiscal 2022.

The net impact of these one-off items will reduce the bank's common equity tier 1 capital ratio by 4 basis points, it added.

© Reuters. FILE PHOTO: A woman exits the ground floor of an office building with Westpac logo amidst the easing of the coronavirus disease (COVID-19) restrictions in the Central Business District of Sydney, Australia, June 3, 2020. REUTERS/Loren Elliott/File Photo

($1 = 1.5855 Australian dollars)

(This story has been corrected to say Westpac warns of a hit, not lower fiscal 2023 profit, in the headline)

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