"It's around about a $25 million impact in terms of an increase in provisions ... obviously we're ramping up our collections, so this is something we'll make sure we keep under control."
Westpac's CFO Peter King also added that the bank may need to increase bad debt provisions for five large corporate clients.
The ABC understands that this list likely includes Slater & Gordon, where Westpac is the joint leader of a banking syndicate with NAB that is owed hundreds of millions of dollars by the financially troubled law firm.
Sorry Bergo - Rumour and reporting still solid
SGH Price at posting:
27.5¢ Sentiment: Sell Disclosure: Not Held
