Westpac has joined the National Australia Bank in revealing pre-result, one-off losses, and other costs of more than a billion dollars.
In the case of the NAB, it was more than $600 million for the second half to September 30 – Westpac on Monday revealed a bill of $1.2 billion.
Both NAB and Westpac are due to reveal their results next week after the ANZ kicks off the mini-reporting season on Thursday.
The bank said its life insurance business would be written down by $406 million and the group’s disability insurance business would report a loss of $260 million, ahead of the results announcement next Monday.
As well there are the extra costs related to the landmark legal case over anti-money laundering law breaches and the $1.3 billion fine (most of which has been already provisioned $900 million of the estimated cost and said it would add to that provision in its full-year result).
The losses were partly offset by an increased valuation of its holding of buy now, pay later platform Zip Co by $303 million, which became effective before the bank sold the shares last week for $367 million after linking with rival Afterpay.
Westpac has also put aside an additional $182 million to compensate customers who were sold incorrect loans, overcharged or were provided poor advice. As part of this increased provision, $104 million will pay for running the remediation program and $38 million will be used pay pay for settling legal disputes with customers.
Westpac shares rose 0.4% to $18.70.