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artofohm
Victoria
6 Posts |
 Posted - 07 Apr 2008 : 2:45:56 PM
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If I were you I would move my money from ANZ to another safer haven, give nthe larg ewrite down below they might be in a worse position than they are stating, they report earnings on 23rd April so just to be cautious I would change now...!
ANZ Increases Bad-Debt Provisions to A$975 Million (Update2) 2008-04-06 21:20 (New York)
By Stuart Kelly
April 7 (Bloomberg) -- Australia & New Zealand Banking Group Ltd., the country's third-largest bank, increased bad-debt provisions by 71 percent, citing financial market turmoil and slowing economies.
The company set aside about A$975 million ($898 million) in the six months ended March 31 to cover potential non-performing loans, up from A$567 million for fiscal 2007, Melbourne-based ANZ said in a statement today. ANZ tumbled 5.9 percent at 11:07 a.m. in Sydney after being suspended earlier.
``As turmoil in global markets and the slowing of the U.S. economy plays out and the Australian economy slows due to tighter monetary conditions, there are likely to be flow-on effects for the commercial portfolios,'' Chief Executive Officer Mike Smith said in the statement.
The provision for bad debts reflects rating downgrades in commercial property and broking industries, increased asset growth as customers returned to banks as their main source of funding, and allowances for the global turmoil in financial market's impact on credit.
ANZ said it's taking a ``conservative approach'' when reviewing possible provisions. It sold half of the assets of collapsed stockbroker Opes Prime Group Ltd., an executive from appointed receivers Deloitte Touche Tomatsu said on April 6. ANZ also funded Centro Properties Group, the Australian property trust now struggling to refinance A$4.9 billion of debt.
Other Australian banking shares also fell today, with National Australia Bank dropping 2.8 percent and Commonwealth Bank of Australia sliding 3.2 percent. The S&P/ASX 200 Banks Index, consisting of seven Australian banking stocks, has declined 17 percent this year.
ANZ is scheduled to report earnings on April 23.
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Spencer Campbell
http://www.australianpropertyscam.com |
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Is your money safe with ANZ?
