Australia’s Westpac is able to make $824 million from unit sales in the second half By Stocksak

© Stocksak. FILE PHOTO – A building featuring the Westpac logo can be seen in Sydney’s Central Business District, Australia, June 3, 2020. Picture taken June 3, 2020. REUTERS/Loren Elliott/File Photo

(Stocksak) – Australia’s Westpac Banking (NYSE:) Corp on Monday warned that its second-half net profit and cash earnings would be reduced by A$1.3billion ($824m) after tax. This was due to a loss from its life insurance business.

Westpac, third-largest lender of the country, said that the one-off fee will have a net impact of 12 basis point (bps) on its common Equity Tier 1 capital ratio. The unit sale added 17bps.

According to the bank, it expects that the sale of its Australian life insurer business to Japan’s Dai-ichi Life Holdings will result in a loss in excess of A$1.1 billion. Additional expenses and an increase in provisions will add to the one-off cost.

Westpac will announce its fiscal 2022 results Nov. 7. Rivals National Australia Bank and Australia and New Zealand Banking Group are set to report their annual results, respectively, on Nov. 9th and Oct. 27th.

($1 = 1.58 Australian dollars)

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