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ANZ Bank chief Mike Smith warns of bad debt
Leah McLennan
May 04, 2009 12:00am
ANZ Bank chief executive Mike Smith has warned that the bank was likely to face higher levels of bad debt.
"Basically revenues are likely to continue to increase but we will have an increase in provision charge," he said yesterday.
He expects provisions to be around $1.4 billion to $1.5 billion over the coming half years.
Last Wednesday, ANZ reported a 28 per cent plunge in first half profit after bad debts and losses on derivative trades spiked.
The bank warned further loan defaults will hurt its annual earnings.
Net profit for the half year ended March 31 fell to $1.42 billion, from $1.96 billion in the same period last year.
Provisions for bad debt almost doubled to $1.4 billion, from $726 million.
Mr Smith said the group "hopes" to make an acquisition this year, amid reports the company may be in the race for the Royal Bank of Scotland's (RBS) Asian assets.
He would not confirm if the bank was looking at RBS's Asian retail and commercial assets.
Mr Smith also warned the bank might be cautious about passing on future cash interest rate cuts by the Reserve Bank.
Leah McLennan
May 04, 2009 12:00am
ANZ Bank chief executive Mike Smith has warned that the bank was likely to face higher levels of bad debt.
"Basically revenues are likely to continue to increase but we will have an increase in provision charge," he said yesterday.
He expects provisions to be around $1.4 billion to $1.5 billion over the coming half years.
Last Wednesday, ANZ reported a 28 per cent plunge in first half profit after bad debts and losses on derivative trades spiked.
The bank warned further loan defaults will hurt its annual earnings.
Net profit for the half year ended March 31 fell to $1.42 billion, from $1.96 billion in the same period last year.
Provisions for bad debt almost doubled to $1.4 billion, from $726 million.
Mr Smith said the group "hopes" to make an acquisition this year, amid reports the company may be in the race for the Royal Bank of Scotland's (RBS) Asian assets.
He would not confirm if the bank was looking at RBS's Asian retail and commercial assets.
Mr Smith also warned the bank might be cautious about passing on future cash interest rate cuts by the Reserve Bank.
