ANZ Bank announces a massive 28 per cent first half profit loss
Wednesday April 29, 2009
ANZ Bank released figures today that show the bank has recorded a massive 28 percent decline in first half profit to $1.417 billion. The net profits have slipped from $1.963 billion in the previous corresponding year.
The decline of 43 percent in cash profit to $954 million was also a major factor of the ANZ bank financial report. The ANZ Bank total credit impairment charges have also increased by 28 percent from $726 million to $1.435 billion since last year's corresponding period.
Bank profits across the board were always expected to be lower than previous forecasts; the ANZ Bank had forecasted the full year provisions of between $2.4 billion and $2.5 billion.
ANZ Bank says it expects revenue from its markets trading business and official cash interest rate to slip further with the negative impact of the commercial property market being felt harder than expected.
The bank figures and the economic climate show no signs of the market improving for the remainder of the year with expectations that these figure trend will continue into the second half and into fiscal 2010.
The Bank further stated that it fully expects the commercial sector and SMEs (small and medium sized enterprises) to be negatively impacted while bad debt provisions for the household sector are expected to rise from the first half of fiscal 2010.
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