Westpac flags $140m hit to first-half profit from hedging losses

The news: Banking major Westpac has flagged a hedging-related write-down to first-half profit in its upcoming results.

The numbers: The lender expects its net profit after tax for the first half ended 31 March to be lower by $140 million due to losses relating to economic hedges and net ineffectiveness on qualifying hedges, which reverse over time.

The context: Westpac will announce its half-year results on 5 May. Australia’s second-biggest lender in February reported a drop in first-quarter profit along with a dip in net interest margins as cost of living pressures and high interest rates proved to be a challenge for customers.