Westpac’s September half earnings will be cut by more than A$1 billion as a result of an increase in provisions and costs associated with its Austrac proceedings, increased customer remediation provisions, the impact asset sales and revaluations, and goodwill and intangible write-offs.

The list includes $816 million of new items (after tax) and a previously announced additional provision of $404 million (after tax) for Austrac matters.

A write-down of goodwill and intangibles associated with Westpac Life Insurance Services, the bank’s Auto Finance business and capitalised software add up to $568 million after tax.

Revaluation of life insurance liabilities and a loss on the agreed value of the bank’s vendor finance business will reduce cash earnings by $267 million. The net impact will be offset by a $212 million revaluation of the group’s holding in Zip Co.

On the customer remediation front, the bank has increased its provision for refunds, repayments, associated costs and litigation provisions by $182 million after tax.

The bank booked $258 million after-tax for estimated customer refunds and associated costs in the March half.

This follows provisions of $341 million in the September half last year and $617 million in the March half last year. Remediation programs include refunds to business customers who were provided with the wrong loans, refunds of fees to BT customers and refunds of ongoing advice fees.

With the latest announcement, total remediation provisions add up to around $2.4 billion.

These items will knock 24 basis points off the bank’s common equity tier 1 capital ratio, which was 10.8 per cent at the end of the March half.