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Westpac Announces $273 Million Restructuring Charge

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Lender expects productivity initiative to deliver benefits over the next two years

Westpac has announced a pre-tax restructuring charge of $273 million for the second half of the 2025 financial year. The charge relates to a productivity initiative called “Fit for Growth”, which the bank anticipates will yield benefits over the subsequent two financial years. Westpac is one of Australia’s largest banking and financial services institutions, providing a broad range of services to individuals, businesses, and institutions. The company aims to help Australians prosper and grow.

According to Westpac, the “Fit for Growth” program saw modest benefits in the current financial year. Overall productivity gains are expected to offset the program’s costs this year. The restructuring expense will not be treated as a notable item in the bank’s financial reporting.

However, Westpac also noted that its reported net profit after tax in the 2025 financial year will be reduced by $56 million. This reduction is due to other notable items specifically related to hedging activities. These hedging-related items will be classified as notable items in the financial statements.

Westpac is scheduled to release its full-year results on November 3. Investors and analysts will be closely watching these results for further details on the restructuring program and its potential impact on the bank’s future performance.

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