Westpac reveals write-down associated with superannuation business exit

Westpac has begun clearing the accounting decks ahead of its exit from key business units, including superannuation.

In documentation released on the Australian Securities Exchange yesterday, the big banking group wrote down $154 million relating to its soon to be sold superannuation business.

It said that in preparation for the exit of its superannuation business, “the carrying value of our superannuation intangible assets was review and found to be no longer supportable”.

The ASX announcement said that this included $122 million of goodwill, “which is all the good will attributable to the business” and $45 million of capitalised software.

At the same time Westpac also pointed to a $65 million reduction in revenue attributable to additional provisions for customer refunds payments associated costs and litigation provisions.

It said the ongoing review of customer remediation, litigation and regulatory investigations had led to the following changes in provisions:

• Revenue: $36 million decrease for additional remediation related to wealth products, partly offset by the release of some provisions in Westpac New Zealand and
• Expenses: $46 million increase for additional costs related to our remediation programs and for litigation matters, including an increase to prior provisions following agreement with ASIC to settle six longstanding matters announced on 30 November, 2021.