NZ impaired assets hurt Westpac in Q3

Friday 21st August 2009

Westpac Banking Corporation, Australia's largest bank, has reported A$1.1 billion in cash earnings for the three months to June 30, largely unchanged from the same quarter a year earlier.

Weighing on the results were A$865 million of impairment charges, up from A$811 million in the previous quarter, with a third of total impaired loans stemming from New Zealand.

Of this, A$135 million relate to two New Zealand entities to which Westpac is exposed, the bank said. Australian business customers and New Zealand customers in general remained under stress, despite signs of improvements in global economic conditions, the bank said.

"Given the improving economic fundamentals and the extensives reviews of our portfolio we believe that the ratre of increasenin stressed exposures is unlikely to be repeated in coming months," said Westpac's chief exexcutive Gail Kelly. "The third quarter has shown some early encouraging signs of improvement. In particular, stronger business and consumer confidence and better-than-expected growth in China are assisting the Australian economy."

Businesswire.co.nz

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