Westpac flags US$359mil provision for refunds, sees profit hit

SYDNEY: Australia’s Westpac Banking Corp said it will set aside A$510mil (US$359mil) to refund customers who had been charged fees for services not rendered, as it seeks to rebuild its image following revelations of misconduct in a sector-wide inquiry.

The charge will reduce Westpac’s reported cash earnings for the six months to March by an additional A$357mil, raising the total hit for the half to A$617mil.