Australia’s Westpac sees over US$2bil hit to earnings

Australia’s second-largest bank said it would take a pre-tax impairment charge of A$2.24bil due to potential virus-related credit losses, equivalent to about 0.62% of gross loans, up from 0.13% in the previous half.

SYDNEY: Westpac Banking Corp said it would write down more than A$3.67bil (US$2.36bil) in its first-half results, with most of the charges stemming from the economic deterioration expected from the coronavirus outbreak.

Westpac is the second of Australia’s Big Four banks to reveal estimates of losses related to the pandemic, taking a larger charge and a more forthright approach than its smaller peer National Australia Bank on Monday, analysts said.