Reporting bad news allows a company to draw a line under the bad news, and in a sense, start again.

But this won't happen with Westpac's revelation of a 22 per cent fall in net profit and its putting aside A$1.4 billion ($1.5 billion) for customer compensation and remediation for poor service. Investors hoping the confessions will allow the bank to put the fallout from last year's Banking Royal Commission behind it are very much mistaken.

As Westpac unveiled a A$3.3 billion half-year net profit, a couple of blocks away in Sydney the Federal Court heard allegations the bank breached

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