By David Winning

SYDNEY--Westpac Banking Corp. reported a 66% slide in annual net profit, as it absorbed hefty one-off charges that included provisions tied to breaches of money-laundering and terrorism-financing laws.

Westpac said its net profit totaled 2.29 billion Australian dollars (US$1.61 billion) in the 12 months through September.

Cash earnings--a measure tracked closely by analysts--fell by 62% to A$2.61 billion. Excluding notable items, cash profit dropped by 34% to A$5.23 billion.

Last month, Westpac signaled it expected to book A$1.22 billion of exceptional items, including writedowns of A$568 million of goodwill and intangibles associated with Westpac Life Insurance Services Ltd., the company's Auto Finance business and capitalized software.

Westpac also said at the time that it would lift the provision and costs from a civil case related to the biggest breach of the Australia's money-laundering and terrorism financing laws in history by A$415 million. This includes A$404 million in provisions associated with its recent A$1.3 billion settlement with Australia's financial-intelligence agency that had previously been announced.

"2020 has been a particularly challenging year and our financial result is disappointing," said Chief Executive Peter Kind. "Our earnings have been significantly impacted by higher impairment charges, increased notable items and the sharp decline in economic activity."

Directors of the lender declared a final dividend of A$0.31 per share, representing a 49% payout of its annual statutory result and within guidance set by Australia's prudential regulator.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

11-01-20 1608ET