WBC - Westpac

[Snoopy]

Time to repeat this exercise for FY2017.

Time to repeat this exercise for FY2019.

Westpac Business Unit Revenues	FY2019 (from AR2019 p156)
Consumer Bank	$9,083m
Business Bank	$6,556m
BT Financial Group	$0m
Westpac Institutional Bank	$2,735m
Group Business	-$2m
Total Australian Revenues	$18,372m

Westpac Business Unit Cash Earnings	FY2019 (from AR2019 p156)
Consumer Bank	$3,288m
Business Bank	$2,431m
BT Financial Group	$0m
Westpac Institutional Bank	$1,014m
Group Business	-$869m
Total Australian Cash Earnings	$5.864m

Rather unusually for the 'Group Business', this business unit has suffered a very significant loss adding up to hundreds of millions of dollars. This has 'distorted' Group Business profitability for reasons described in AR2019 p155

"Following the Group's decision to restructure the Wealth operating segment and to exit the advice business in March 2019, the remaining Advice business (including associated remediation) and support functions have been transferred to Group Business"

Westpac is facing several lawsuits in Australia, and compensation claims against in house wealth management advisors. Some compensation has been put on the books in anticipation of settlements, The actual dollars set aside can be found in an earlier post of mine on this thread (Post 139 titled: An unorchestrated 'litigation lot' of liabilities: Part 2).

Real and necessary as the total $1,130m after tax provision is, these matters are not designed as a 'go forward' part of Westpac's new business development strategy. It will therefore be necessary to remove this 'litigation compensation' and 'refund of fees' effect from any normalised earnings that we wish to derive for the FY2019 period.

SNOOPY