© Reuters. FILE PHOTO: An office building with Westpac logo is seen in the Central Business District of Sydney, Australia, June 3, 2020. Picture taken June 3, 2020. REUTERS/Loren Elliott/File Photo
(Reuters) – Australia’s Westpac Banking (NYSE:) Corp warned on Monday that its second-half reported net profit and cash earnings will be reduced by A$1.3 billion ($824 million) after tax, citing a loss on the sale of its life insurance business, among others.
Westpac, the country’s third-largest lender, said 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.
The bank said it expects the sale of its Australian life insurance business to Japan’s Dai-ichi Life Holdings announced in August last year to result in a loss of A$1.1 billion, with other expenses, writedowns and an increase in provisions further adding to the one-off charge.
Westpac is set to announce its fiscal 2022 results on Nov. 7. Rivals National Australia Bank (OTC:) and Australia and New Zealand Banking Group will report their annual results on Nov. 9 and Oct. 27, respectively.
($1 = 1.58 Australian dollars)
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