News: WBC UPDATE 1-Australia's Westpac sees higher costs related to bushfires, regulations

(Adds details on costs, background)

Feb 19 (Reuters) - Australia's Westpac Banking Corp (WBC) said on Wednesday that its fiscal 2020 earnings would be hit by a rise in costs related to deadly bushfires and a lawsuit brought by financial crime regulator AUSTRAC.

While pegging the costs of insurance claims for calamities, like the bushfires and hailstorms earlier this year, at A$140 million before taxes ($93.60 million), Westpac said it was reconsidering its cost projections for the year owing to more stringent regulatory oversight.

"Bushfires, storms and coronavirus are expected to have an economic impact which may ultimately affect banking activity and growth," the bank said in a limited trading update.

Devastating wildfires in Australia and the coronavirus outbreak threaten growth prospects, including that of China, Australia's largest trading partner.

The lender had earlier expected 2020 costs to be 1% higher than the previous year. The projection would be revised when Westpac reports its half-year results in May, it said.

On top of the challenges facing the country's banks, Westpac is still reeling from money-laundering revelations toward the end of the last year that pointed to the lender facilitating payments to child exploiters. Westpac potentially faces a massive fine.

As of the end of 2019, Westpac's common equity tier one capital ratio stood at 10.8%.

($1 = 1.4957 Australian dollars)