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Christchurch disaster may cost Westpac $74m

Christchurch disaster may cost Westpac $74m

Westpac (ASX:WBC) expects an up to NZ$100 million ($73.9 million) impact on its NZ subsidiary's earnings due to the February Christchurch earthquake.

In a market disclosure, Westpac said it estimates its subsidiary Westpac New Zealand will accrue credit losses of between NZ$30 million and NZ$100 million from the disaster.

The actual impact is hard to quantify accurately, the statement added, because recovery efforts are still being developed.

But the bank said it did not expect a material impact on its Tier 1 capital position as a result, because the provisioning needed can be absorbed within its anticipated operating profit.

The 6.3 magnitude Christchurch earthquake caused around NZ$15 billion worth of damage, according to New Zealand treasury estimates.

WBC shares had fallen 2.3% to $22.340 by late Tuesday afternoon.

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