World News – UA – ‘Disappointing’: Westpac profits drop 62%, dividend reduced


Westpac reported a 62% drop in cash earnings for the year and will pay shareholders a sharply reduced dividend of 31 cents in which Chief Executive Peter King called the disappointing results a difficult year

The big four banks earned $ 2.6 billion from $ 6.8 billion in the same period last year and its statutory net profit was also down to $ 2.3 million, down 66% year-on-year

Westpac’s dividend is the maximum payout that could be made under the prudential regulator’s guidelines, but it is 61% lower than the dividend of 80 cents per share in the second half of last year The country’s second-largest bank has announced that it will not pay a dividend in June, due to uncertain economic outlook

M King said in a statement filed with ASX on Monday morning that Westpac’s annual earnings were affected by higher depreciation charges, an increase in notable items and the sharp drop in economic activity caused by the pandemic.

“2020 has been a particularly difficult year and our bottom line is disappointing,” he said “At the same time, we have incurred higher expenses due to the increase in resources to handle the demands unprecedented COVID-19 and address our compliance issues »

Westpac spending grew 6% throughout the year as it invested money to fix its risk management and compliance systems, after being fined $ 13 billion for generalized failures in its anti-money laundering procedures

« We took responsibility for our mistakes and began a process of fundamental change, which included refreshing the board and management and strengthening financial crime oversight, compliance and conduct « said M King

The bank also took stock of the write-downs of M loans King said the allowance for bad debts had increased from $ 2.2 billion to $ 6.2 billion and more than two-thirds of deferral customers had resumed making payments

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Westpac, Finance, Dividend

World News – UA – « Disappointing »: Westpac Profits Dip 62 Percent, Dividend Cut


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