Westpac Banking Corp (ASX: WBC) has outlined another $235 million of costs due to the Royal Commission.
Westpac is Australia’s second largest bank. It also owns Bank of Melbourne
, St. George Bank, BankSA
and RAMS.
The new $235 million of costs:
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Westpac outlined that a total of $235 million provisions will reduce the FY18 cash earnings result. The bank said that there are several elements to it.
There are increased provisions for customer refunds associated with certain advice fees charged by salaried financial planners, including where advice services were not provided.
There are also increased provisions for refunds to customers who may have received inadequate advice from Westpac planners.
Along with other reasons, Westpac also said there are estimated provisions for recent litigation, including costs and penalties associated with responsible lending and Bank Bill Swap Rate (BBSW) cases.
However, this may not be the last of provisions because the reviews will continue into FY19 according to Westpac.
The Westpac share price has fallen by nearly 15% over the past year due to the Royal Commission according to Google Finance.
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