SYDNEY Oct 25 Australia and New Zealand Banking Corp will see higher provisions for bad debts in the year to September 2013 as the Australian economy cools.
"2013 does look challenging with a softening economic outlook," Chief Executive Michael Smith told an investor conference call.
"I think realistically it will include a slightly higher provision outlook, which will be broadly in line with current market consensus."
ANZ, which reported forecast beating 2011/12 second-half results, said earlier that second-half bad debt provisions on an underlying basis rose to A$686 million from A$551 million a year ago.
Analysts expect the top four banks' bad-debt charges to rise between 12 and 20 percent annually for the next two years, compared with profit growth of less than 5 percent. (Reporting by Narayanan Somasundaram; Editing by Richard Pullin)