Westpac's profit plunges as charges for bad loans soar

Westpac's latest general disclosure statement shows net profit for the three months fell to $45 million from $180 in the March quarter last year, bringing profit for the six months to $160 million, down 46.5% from the same six months a year earlier.

By contrast, net interest income for the latest quarter was up 24.8% to $393 million and up 16.7% to $700 million for the half year.

Impairment charges against profit jumped to $225 million in the latest quarter, bringing the charges for the six months to $316 million, up from just $61 million in the same six months a year earlier.

Impaired mortgages only accounted for $50 million of the impairment charges for the six months and other retail exposures $28 million while business loans accounted for $238 million.