News: WBC UPDATE 1-Australia's Westpac braces for lower H1 earnings, expects higher credit losses...

(Adds details on provisions, background, expected dividend decision)

April 14 (Reuters) - Australia's No. 2 lender Westpac Banking Corp (WBC) said on Tuesday it expects lower cash earnings for the first-half due to asset write-downs and impairment provisions, as it braces for higher credit losses due to the coronavirus outbreak.

Excluding the yet-to-be finalised impairment provisions due to credit losses, Westpac said it expects other new and increased provisions and asset write-downs totalling around A$1.43 billion ($912.48 million) after tax for the first-half.

The biggest chunk of the current provisions, about A$1.03 billion, relate to costs associated with proceedings where a regulator has accused the company of 23 million breaches of anti-money laundering laws.

The regulator, AUSTRAC, has alleged the banking giant ignored red flags and for years enabled payments from convicted child sex offenders and "high-risk" countries.

Other items include provisions for customer refunds, litigation, a reduction in the value of several assets and costs of changes in the provision of group life insurance.

Westpac said it is currently undertaking a detailed analysis on the expected impairment charge due to higher anticipated credit losses, which it expects to announce ahead of its half-year results on May 4.

The lender also added that these provisions, and the possibility of a higher impairment charge, will be taken into account when deciding on a dividend payout expected to be announced at its first-half results.

($1 = 1.5672 Australian dollars)

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Australia's Westpac slapped with 23 mln money laundering 

breaches

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