Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Major bank sounds alarm on bad debts

Major bank sounds alarm on bad debts

One of Australia’s largest banks has warned of an increase in bad debts ahead of the release of its financial results for the six months ending 31 March.

Last week, ANZ provided an update on the credit environment reflecting the evolving position with a small number of Australian and multi-national resources related exposures.

“Consideration of these exposures formed part of ANZ’s first quarter trading update released on 17 February when the bank disclosed the total group credit charge was anticipated to be a little above $800 million for the first half of 2016,” the group said.

Advertisement
Advertisement

“Recent developments with these institutional exposures, however, mean the total group credit charge for the first half is expected to increase by at least $100 million.”

ANZ’s acting CFO Graham Hodges said the overall credit environment remained broadly stable, but the bank was continuing to see “pockets of weakness” associated with low commodity prices in the resources sector and related industries.

“This is a challenging part of the cycle for these customers with implications for the banking sector as individual circumstances evolve,” Mr Hodges said.

“We are continuing to monitor ANZ’s exposures carefully and we will keep investors up-to-date with any changes to the credit outlook.”

ANZ’s financial results for the six months ending 31 March will be announced on 3 May 2016.

[Related: ANZ rejects 'toxic culture' allegations]

Major bank sounds alarm on bad debts
mortgagebusiness

 

Latest News

An increasing number of Australians are tied to a mortgage, despite a fall in the home ownership rate, new ABS data has revealed. ...

The Commonwealth Bank of Australia has agreed to provide $150 million of debt funding to Queensland Airports Ltd, with $75 million committed...

The National Housing Finance and Investment Corporation has provided two loans to social and affordable housing providers, including its fir...

FROM THE WEB
podcast

LATEST PODCAST: A shift in serviceability requirements

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.