Westpac flags $173 million profit hit

The news: Banking giant Westpac has flagged a hit to profits on account of restructuring costs, asset writedowns and customer refunds ahead of full-year results next month.

The numbers: The lender expects a total hit of $173 million from significant items, which include provisions for customer refunds of $176 million, restructuring costs of $140 million, an $87 million loss on account of corporate and branch closures, and $26 million of hedging losses. A $256 million profit from selling the Advance asset management business to Mercer Australia in April would reduce the overall losses.

The context: Westpac, Australia’s second largest bank by assets, is due to report its full-year results on 6 November. The impact from significant items is far lower compared to last year, when it had reported a profit hit of $874 million. The lender lifted dividends and boosted profitability in its half year-results announced in May.