Australia’s Westpac flags $950 mln profit hit, led by energy exit costs

 Australia’s Westpac flags $950 mln profit hit, led by energy exit costs

A pedestrian looks at his phone as he walks past a logo for Australia’s Westpac Banking Corp located outside a branch in central Sydney, Australia, November 5, 2018. REUTERS/David Gray/File Photo

SYDNEY, Oct 12 (Reuters) – Australia’s Westpac Banking Corp (WBC.AX) said on Tuesday it will take a one-off charge of A$1.3 billion ($956 million) against its second-half profit after its institutional banking unit quit energy trading, among other reasons.

The country’s second-largest lender by market capitalisation also lowered its earnings outlook, citing “subdued” financial markets.

Westpac said the one-off charge included provisions to pay out customers seeking remediation for wrongly charged fees, and costs associated with the sale of its life insurance unit.

The company cut the value of its Westpac Institutional Banking (WIB) unit by nearly A$1 billion after “reducing risk in the division through the exit of energy trading,…

Read full article…www.reuters.com