Westpac profit plummets

Westpac reported cash earnings of $2.61 billion, down 62 per cent. The result was “significantly affected” by issues stemming from COVID-19, including higher impairment charges and lower income due to low interest rates and fee waivers, as well as the resolution of the AUSTRAC matter.

"2020 has been a particularly challenging year and our financial result is disappointing,” said CEO Peter King.

Mr King and the other group executives will receive no short-term incentives this year, while no long-term incentives vested as performance hurdles were not met.

But the bank, defying expectations, will pay out a final dividend of 31 cents a share, fully franked. The dividend represents a 49 per cent payout of the full-year statutory result – the maximum dividend Westpac could pay under current APRA guidance.

More to come.