Thanks for saying it for me :D
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What's this? a few days have passed us by without a single post! Quickly, someone post some stats!
" ....interest income rose 6 percent to $832 million as the local lender grew its mortgage loan book 5 percent to $40.7 billion and business lending expanded 5 percent to $24 billion. Impairment charges on bad debts rose to $31 million from $4 million a year earlier, when the bank benefitted from provision recoveries."
From a report on Westpac. Food for some thought with respect to "Impairment charges on bad debt....etc".
Will be interesting to see if they give some detail as to the change from 31mil to 4mil, Have not looked as yet.
I wouldn't read too much into the Westpac situation. The previous $4m charge was abnormally low as a result of some hefty provision recoveries in that period. The assessed quality of the book has been maintained with +90 day mortgage arrears slightly improved. Just don't mention the run away property
prices in Auckland and what effect a significant correction there would have!
I wouldn't read too much into the Westpac situation. The previous $4m charge was abnormally low as a result of some hefty provision recoveries in that period. The assessed quality of the book has been maintained with +90 day mortgage arrears slightly improved. Just don't mention the run away property
prices in Auckland and what effect a significant correction there would have!
HNZ's specific bad debt and general provisioning jumped considerably in the recent half year result. Despite that profit also jumped substantially.
Liked this bit from Westpac story
The New Zealand unit widened its net interest margin to 2.29 percent in the period from 2.28 percent a year earlier, as cheaper wholesale funding costs and improved deposit spreads offset competitive pressure in the mortgage market.
Hope Heartland does a bit better when they widen their margin
ANZ to sell loans worth $6.5 billion in dealer finance biz
SYDNEY - Australia and New Zealand Banking Group on Monday said it plans to sell its Esanda dealer finance business, which includes A$8.3 billion ($6.51 billion) in loans to motor vehicle dealers.
another merger maybe
The sale of Esanda has been an open secret for several months now. GE Finance was initially tipped as the most likely buyer.
Someone has already suggested Esanda is beyond the reach of Heartland, I can't recall who though it seems a reasonable supposition. If it is a realistic acquisition opportunity, how and why?
Paul Henry this morning, reverse equity loans were the topic with an AMP representative chipping in with his opinion,both recommending the elderly to stay away from them,and to downsize as an alternative.
It seems they may be pushing these loans uphill with this sort of negative publicity.