Westpac flags $164m hit to first-half profit
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The news: Banking major Westpac has flagged a write-down to first-half profit when its results are announced on 6 May.
The numbers: The lender expects its net profit after tax for the first half ended 31 March to be lower by $164 million due to unrealised fair value gains and losses relating to economic hedges and net ineffectiveness on qualifying hedges, which reverse over time.
The context: Westpac has also outlined reporting changes, including operating segments being restated following the establishment of separate consumer and business and wealth arms and the dissolution of the specialist businesses operating segment.
It said the changes would not impact the group’s net profit after tax or the composition of line items at the group level.
In February, the big four bank reported a contraction in margins for the December quarter amid deposit and lending headwinds, resulting in a $1.5 billion profit, 6% lower than the quarterly average over the previous six months.
The source: ASX announcement
