Westpac Banking Corp has revealed a massive 70 per cent slump in first half cash profit to $993 million and elected to defer the dividend until there's greater clarity on the impact that COVID-19 will have on bad debts.

The bank has also chosen to bring forward a decision about the bank's involvement in the beleaguered wealth management sector by putting its remaining assets in a separate division as it considers exiting the sector entirely. Westpac shares fell a modest 1 per cent at the open before recovering by midday to trade 1.6 per cent higher.