Accounting change dents Aussie bank earnings

The four largest Australian lenders lost around A$2.7 billion ($2 billion) in earnings on the switch to new accounting standard AASB 9, Risk Quantum analysis shows.

Two of the firms – Westpac and ANZ Bank – implemented the new framework, the Australian equivalent of IFRS 9, on October 1. Westpac estimated a A$709 million earnings deduction net of tax, equivalent to a 16 basis point cut to its Common Equity Tier 1 (CET1) capital ratio. Its actual end-September ratio was 10.63%.  

Westpac said