Westpac Banking Corporation posted third-quarter cash earnings of $1.1 billion, little changed from past quarters, as bad debts continued to rise at Australia's biggest bank by market value. Shares in Westpac fell over two per cent after the Sydney-based bank said impairments for the three months to June 30 increased to $865 million from $811 million in the preceding quarter.
The rise in bad d
ebts mainly reflected continued deterioration in the commercial sector and in New Zealand. "On the risk fron, the bad debt cycle is continuing to work its way through," chief executive Gail Kelly said on Friday. "It's difficult to be precise as to when the impairment cycle may peak." Westpac's third-quarter update, coming after Commonwealth Bank of Australia Ltd's full-year report last week, confirms the country's banks are profitable but are keeping a watch on borrowers who may be in trouble. Westpac shares fell 57 cents, or 2.45 per cent, to close at $22.74. They closed at an 11-month high of $24.40 on August 14. Austock Securities analyst John Buonaccorsi said the cash profit figure was a little below what he had expected, while the bad debt and stressed assets figures probably spooked the market.
For further details visit as: http://news.brisbanetimes.com.au/breaking-news-business/westpac-third-qtr-cash-earnings-at-11b-20090821-esmz.html
The rise in bad d
ebts mainly reflected continued deterioration in the commercial sector and in New Zealand. "On the risk fron, the bad debt cycle is continuing to work its way through," chief executive Gail Kelly said on Friday. "It's difficult to be precise as to when the impairment cycle may peak." Westpac's third-quarter update, coming after Commonwealth Bank of Australia Ltd's full-year report last week, confirms the country's banks are profitable but are keeping a watch on borrowers who may be in trouble. Westpac shares fell 57 cents, or 2.45 per cent, to close at $22.74. They closed at an 11-month high of $24.40 on August 14. Austock Securities analyst John Buonaccorsi said the cash profit figure was a little below what he had expected, while the bad debt and stressed assets figures probably spooked the market.For further details visit as: http://news.brisbanetimes.com.au/breaking-news-business/westpac-third-qtr-cash-earnings-at-11b-20090821-esmz.html
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