InDaily

Adelaide's independent news

Support

Westpac to spend $260m extra compensating customers

Business

Westpac will spend another $260 million to compensate customers affected by its “errors”, taking its total remediation payments so far to $659 million.

Print article

The bank made the announcement to the Australian Stock Exchange this morning.

In the statement, it said that about half of the $260 million cost was related to financial advice and the remainder related to business banking – including providing businesses with loans when it should not have – and consumer banking, including failing to switch interest-only loans when required to principal-and-interest loans.

The provision will be recorded in Westpac’s first-half results, and follows $118 million set aside in the 2017 financial year and $281 million in 2018.

“We are determined to fix these issues and stop these errors occurring again,” chief executive Brian Hartzer said.

The lender said it is still trying to calculate fee-for-no-service refunds for customers of authorised advisers.

“We will continue to review our products and services to ensure they deliver the right outcomes for customers and, if necessary, make further provisions,” he said.

Westpac said it would assess provisions for authorised representatives as part of its first-half results, which are due to be published on May 6.

Westpac shares fell about 1.5 per cent in the first few minutes of trade.

– AAP

Want to comment?

Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.

We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts.

InDaily has changed the way we receive comments. Go here for an explanation.

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron

More Business stories

Loading next article

Subscribe to InDaily – it’s free!

South Australia’s locally owned, independent source of digital news.

Subscribe now and go in the monthly draw* for your chance to WIN a $100 voucher!

Subscribe free here

*Terms and conditions apply

Welcome back!

Did you know it’s FREE to subscribe?

Subscribe now and go in the monthly draw* for your chance to WIN a $100 voucher!

Subscribe

*Terms and conditions apply