Westpac confirms $1.3b hit to balance sheet

Westpac has confirmed the degree to which the sale of its life insurance business and the offloading of Advance Asset Management and the successor fund transfer of BT Superannuation has weighed on its balance sheet. 

The big banking group has confirmed to the Australian Securities Exchange (ASX) that its reported net profit and earnings for the second half will be reduced by $1.3 billion after tax due to the life insurance and superannuation sales together with other items. 

It said the notable items after tax included 

• A loss of $1.1 billion on the sale of Westpac Life Insurance Limited. 
• Expenses and revaluations associated with the sale of Advance Asset Management and successor fund transfer of BT’s personal and corporate superannuation funds 
• Tax benefits from the sales of Westpac’s motor vehicle and vendor finance businesses 
• Expenses and write-downs associated with reducing Westpac’s corporate and branch footprint and 
• And an increase in provisions for customer refunds, associated costs and litigation costs. 

Westpac is scheduled to announce its Full Year 2022 results on Monday, 7 November.