(Australia) – Westpac Banking Corporation will write-off A$180 million on its wealth management operations as it clears its balance sheet ahead of a September 30 balance date.In addition to the write-offs, Westpac announced a A$150 million fall in the value of its US and UK bond holdings, and has confirmed the bank’s profit growth would not be in the double digits this year.
The A$180 million in wealth management write-offs comprise A$110 million in the bank’s existing wealth management operation, and A$70 million in integration expenses relating to the recent acquisitions of Rothschild Australia Asset Management and the BT Financial Group.
The A$110 million write-down reflects changes in accounting policies to an accrual system, more in line with the US approach to goodwill accounting.