By Robb M. Stewart
MELBOURNE, Australia--Westpac Banking Corp. (WBC.AU) expects its second-half cash earnings will take a hit of about 341 million Australian dollars (US$233.8 million) due to the cost of customer-remediation programs.
The bank said Wednesday that about 72% of the cost relates to customer payments and the remainder is associated with running remediation programs. The majority of the provisions are for past financial advice given to customers, it said.
The provisions are part of Westpac's push to deal with outstanding remediation issues and refund customers quickly, Chief Executive Brian Hartzer said.
Westpac, which is due to post results for the 12 months through September on Nov. 4, recorded a net profit of almost A$8.1 billion the year before, with cash earnings of A$8.07 billion.
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