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ANZ CEO says 2012/13 to see higher provisions as economy cools
October 24, 2012 / 11:32 PM / 5 years ago

ANZ CEO says 2012/13 to see higher provisions as economy cools

SYDNEY, Oct 25 (Reuters) - 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)

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