Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Westpac share price: 3 things to look out for in H1 results

Westpac is due to report its half year earnings on Monday, with analysts pricing in customer remediation charges in their estimates.

1. Westpac H1 results: what to watch out for

Australia’s Westpac bank reported cash earnings in the 2018 December quarter of $2.04 billion, compared with a quarterly average of $1.91 billion in the previous six months.

Westpac's 2019’s H1 earnings are expected to suffer, according to many analysts, largely due to customer remediation paybacks in the wake of the banking royal commission.

Westpac said earlier this week that it would set aside A$510 million to refund customers who had been charged fees for services not rendered.

The company said it seeks to rebuild its image following revelations of misconduct after the investigation.

Westpac is now in the process of giving back 28% of the fees it received for the work of its salaried financial planners. Analysts have said that the bank's re-payments could reach $297 million before tax and $75 million before tax in remediation program costs.

2.Westpac share price

On Friday at time of writing, Westpac share price was at A$19.26 falling 2% respectively. Since the company said it would set aside A$510 million in customer paybacks, its share price took a hit falling 0.5% directly after the bank’s statement release.

‘While it is disappointing that we have needed to make these provisions ... our priority was to deal with any outstanding issues and process payments as quickly as possible,’ Westpac Chief Executive Officer Brian Hartzer said.

3. Westpac’s remediation costs

Remediation costs will see Westpac's H1 earnings by fall by an additional A$359 million, raising the total hit for the half to A$617 million, according to the bank.

Westpac follows National Australia Bank Ltd and ANZ bank, which also added remediation provisions to account for self-employed advisers.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.