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
"I think realistically it will include a slightly higher
provision outlook, which will be broadly in line with current
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
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