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Westpac hit by another $341 million in refunds

Westpac’s full-year profit will be down $1.13 billion after it announced a $341 million charge for customer remediation.

The bank’s first-half profits listed $753 million in compensation-linked payments, and with the latest charge, the bank’s cash profit over the full-year will be reduced by $1.13 billion.

Shaw and Partners banking analyst Brett Le Mesurier tells Ross Greenwood the costs continue to get bigger.

“These issues will continue to occur… the number of products they have is so significant that it’s difficult for them to guarantee that there will be no future errors.

“What they can, of course, try to do is make sure that the errors and the costs of the errors are much smaller than they currently are.”

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Image: Getty/Peter Parks