Australia’s third-largest lender has warned that its second half reported net profit and cash earnings will be slashed by $1.3 billion after tax, resulting, in part, from the sale of its life insurance business.
According to the ASX-listed Westpac, the one-off charge will have a net positive impact of 12 basis points (bps) on its common equity tier-1 capital ratio as the unit sale added 17 bps.
Westpac said the sale of Westpac Life Insurance Services, announced in August 2021, to Japan’s Dai-ichi Life is expected to bring about a $1.1 billion loss, with other expenses, write-downs, and a rise in provisions further adding to the one-off charge, Reuters reported.
Westpac will announce its fiscal 2022 results on Nov. 7, while rivals NAB and ANZ will report their annual results on Nov. 9 and Oct. 27, respectively.
