The Westpac Banking Corp (ASX: WBC) share price is underperforming those of the bank's ASX 200 peers on Tuesday.
Its sluggish performance comes after the third-largest big four bank revealed a $1.3 billion earnings hit.
As The Motley Fool Australia reported earlier, the bank's second-half net profit and cash earnings will be $1.3 billion less, mainly due to a $1.1 billion loss from the sale of its life insurance business.
Right now, the Westpac share price is 0.36% higher at $23.955.
That's still a better performance than that of the S&P/ASX 200 Index (ASX: XJO) – it's currently up 0.2%. However, it leaves Westpac's stock underperforming both its sector and its big four peers.
The S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.89% right now.
Meanwhile, shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) have gained 1.15%, 0.92%, and 0.74% respectively.
Let's take a closer look at what's weighing on the Westpac share price on Tuesday.
Westpac share price underperforms peers' on Tuesday
The Westpac share price is underperforming its peers after the bank announced a $1.3 billion post-tax impact from notable items on Monday evening. The hit will be included in its upcoming earnings.
The news hasn't upset Goldman Sachs. The top broker remains bullish on the bank share, retaining its $27.07 price target and buy rating.
The company will release its full-year earnings on 7 November. It has been tipped to post a $5.4 billion profit for the full year, Brisbane Times reported yesterday.
The big four bank announced a $3.28 billion profit and $3.1 billion of cash earnings for the first half of financial year 2022.
Those figures marked half-on-half increases of 63% and 71% respectively. Though, they were 5% and 12% lower respectively than that of the first half of financial year 2021.
The Westpac share price may be underperforming that of its peers on Tuesday, but it's outperformed over the longer term. Year to date, the bank's stock has gained nearly 11%.
The next best-performing ASX 200 big four bank share is NAB. It's gained 8.5% so far in 2022.
