Australia’s Westpac flags $950 mln profit hit, led by institutional banking

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A pedestrian looks at his phone as he walks past a logo for Australia’s Westpac Banking Corp located outside a branch in central Sydney, Australia, November 5, 2018. REUTERS/David Gray/File Photo

  • Australia’s No. 2 bank to be hit with A$1.3 bln hit to earnings
  • Write-down mainly due to weaker outlook at institutional unit
  • Announcement is a setback for management credibility – Citi

SYDNEY, Oct 12 (Reuters) – Australia’s Westpac Banking Corp (WBC.AX) said on Tuesday it will take a one-off charge of $956 million against its second-half profit mainly due to a weaker earnings outlook at its institutional banking unit as well as remediation charges.

The country’s second-largest lender by market capitalisation said a protracted period of low rates, “subdued” financial markets and its exit from energy trading would lead to lower earnings at the unit. The bank gave no further explanation of its exit from energy trading.

“Overall we think it is a setback for…

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