Westpac Banking Corporation (ASX:WBC) is set to add $685 million to its fiscal 2010 statutory net profit because of its merger with St George Bank.
Westpac says the boost is because of a tax consolidation for the 2009 and 2010 financial years, when Westpac was required to rearrange the tax value of some St George Bank's assets to reflect the suitable market value of the assets.
The $685 million tax consolidation will also result in Westpac gaining 24 basis points to its Tier 1 and Core capital ratios.
The bank says it will not include this payment in cash earnings in its full year results, when it next week releases its annual earnings on 3 November.
Westpac recorded a $2.9 billion profit in the six months to 31 March 2010.
WBC Price at posting:
$22.94 Sentiment: None Disclosure: Held
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