Banks pile up capital as lending slows up Nov 4, 2009
Domestic banks are suffering from slower growth in loans and rising bad debts but their capital ratios are sound, according to the Reserve Bank's Financial Stability Review (FSR). The ratio of capital to banks' risk-weighted asset profile rose from 13. (Business Report, South Africa)
Westpac full-year profit drops 11% Nov 4, 2009
A significant drop in earnings from its institutional banking and New Zealand divisions and a huge rise in bad debts have seen annual net profits at the Westpac Group slide 11 per cent to $3 ... These two sectors are now being impacted by the trickle-down effect of the general increase in bad debts after Westpac's corporate customers were hit first in 2008. (Sydney Morning Herald -- Business)
Westpac Second-Half Profit Falls 10%, Says Bad Debt Cycle May Have Peaked Nov 4, 2009
Westpac Second-Half Profit Drops 10% on Bad Debts (Update3) - Bloomberg ... Westpac Second-Half Profit Drops 10% on Bad Debts (Update3) ... Nov. 4 (Bloomberg) -- said second- half profit fell 10 percent, less than analysts expected, as the lender joined in saying bad debts have peaked as the economy recovers. (Bloomberg -- Australia & New Zealand)
Phoenix Reports Financial and Operational Results for the Three-Month & Nine-Month Periods Ended September 30, 2009 Nov 4, 2009
Three-month period Nine-month period ended September 30, ended September 30, (Stated in thousands of dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings 3,145 9,525 7,733 19,116 Add (deduct) items not affecting cash: Depreciation and amortization 2,743 2,330 8,381 6,422 Future income taxes (2,352) 369 (2,067) 10 Unrealized foreign exchange loss (gain)... (CCNMatthews Press Releases)
Darling hails Lloyds and RBS move Nov 4, 2009
Page last updated at 20:44 GMT, Tuesday, 3 November 2009. Please turn on JavaScript. (BBC News -- UK)
China Said to Plan Review of Developer Loans on Concern at Surging Prices Nov 3, 2009
Regulators in Hong Kong, Singapore, Taiwan and India are also trying to control property lending, after rising prices across Asia fueled concerns that bad debts could spiral. The Reserve Bank of India last week ordered lenders to set aside more funds to cover property loans. (Bloomberg -- Asia)
Westpac result to show how debts going Nov 2, 2009
Investors will be looking to see whether bad debts at Westpac Banking Corporation have peaked when Australia's second biggest lender reports earnings this week. Westpac, the last of Australia's banks to report its fiscal 2009 earnings, said in August that bad debts had risen in the third quarter, while it had increased its watchlist for borrowers who might have trouble with repayments ... And Westpac chief executive Gail Kelly was unwilling to say in August when bad debts would peak. (Sydney Morning Herald -- Business)
Asian Stocks Fall on Yen, U.S. Consumer Spending Report; Mitsubishi Drops Nov 2, 2009
Apple Daily said the banks provision for bad debts in the U.S. may stay at a high level for the near future, citing Sandy Flockhart, who heads HSBCs Asia-Pacific unit. In Shanghai, Lujiazui rose 8. (Bloomberg -- Asia)
The banks are rolling in it despite air of despondency Oct 31, 2009
True, both revealed huge bad debts and tax problems in New Zealand, while NAB's exposure to the Old Dart and its portfolio of toxic assets certainly put a dampener on proceedings. But all that was expected. (Sydney Morning Herald -- Business)
Banks have turned corner: ANZ chief Oct 30, 2009
ANZ has posted an 11 per cent drop in annual profit, but declared the nation's banking system might have turned a corner, with bad debts that have been sapping earnings over the past year finally peaking ... While bad debts were still likely to remain elevated into next year, this would mostly be a lag effect of the economic shake-out over the past 18 months. (Sydney Morning Herald -- Business)
Market Leaders weathers storm - 33.27 percent in 6 months Oct 30, 2009
BlackRock Index - Top 20 - Latest Investment Opportunities - Offer Overview. Recommended Portfolios. (Sydney Morning Herald -- Business)
Banks are riding high and it's costing all of us Oct 29, 2009
This can mainly be attributed to the success of its Australian banking operations, which were able to lift operating profit before bad debts by 3 per cent in the second half to raise its NIM 12 basis points and market share in key areas. For instance, business lending market share jumped from 19. (Sydney Morning Herald -- Business)
Business: home to bad debts Oct 29, 2009
Reserve Bank assistant governor Malcolm Edey highlighted that yesterday and pushed bank share prices lower when he noted that bad debts were concentrated in business lending portfolios, and warned that commercial property exposure was ''an area to watch ... Whatever the motivation, the result has been useful: fewer companies have been driven to the wall than expected, jobs have held up, and the bad debts cycle is set to be about half as bad as the one that accompanied the recession of the early... (Sydney Morning Herald -- Business)
ANZ Bank Second-Half Profit Rises 13% on Lending Income, Slowing Bad Debts Oct 29, 2009
Oct. 29 (Bloomberg) -- , Australias second-biggest provider of business loans, said second-half profit rose 13 percent as lending income increased and bad debts slowed ... the countrys biggest lender to businesses, yesterday slumped to a loss of A$75 million in the six months ended Sept. 30, its first in at least nine years, after charges for bad debts climbed. (Bloomberg -- Australia & New Zealand)
Australia's Key Stock Index Drops Most in Four Months on Growth Concerns Oct 29, 2009
85, even as second-half profit rose 13 percent on higher lending income and a slowdown in bad debts. Full-year net income fell 11 percent to A$2. (Bloomberg -- Australia & New Zealand)
Digi raises the ante Oct 29, 2009
DiGi said that competition in 2010 would intensify and that there would be further pressure on its ebitda margins, DiGi reported that its ebitda margins had been slightly affected by rising bad debts from customers and costs involved in expanding its 3G business. However, it was confident the margin pressures would be partly offset by an ongoing cost efficiency programme that includes targeted advertising, reduced travel and other staff costs. (The Star Online, Malaysia -- Business)
LHC Group Announces Third Quarter 2009 Results Oct 29, 2009
01 par value: 40,000,000 shares authorized; 20,947,421 and 20,853,463 shares issued and 17,974,561 and 17,895,832 shares outstanding, respectively 179 179 Treasury stock - 2,972,860 and 2,957,631 shares at cost, respectively (3,402) (3,072) Additional paid-in capital 87,820 85,404 Retained earnings 125,530 94,310 -------- -------- Total LHC Group, Inc. stockholders' equity 210,127 176,821 -------- -------- Noncontrolling interest 13,732 7,123 -------- -------- Total equity 223,859 183,944... (Primezone Releases)
Sack them all: investors vent Suncorp fury Oct 29, 2009
Suncorp's provision for bad debts rose to $710 million in 2008-09, a tenfold increase on the previous year. Mr Story told BusinessDay he understood shareholders' concerns. (Sydney Morning Herald -- Business)
Do NABs woes point to UK opportunities? Oct 29, 2009
Earnings from the banks UK businesses fell by a whopping 69% to 78m as the charge for bad debts surged from 175m to 421m for the year (a 140% increase). To add insult to financial injury, those tattered pound profits translate to fewer Aussie dollars than they would have last year; the pound is pardon the pun in the doghouse. (Sydney Morning Herald -- Business)
How to manage your cashflow Oct 28, 2009
" The wine industry has a bad form for cash flow, and Margans sales have plateaued for the past few years, given the glut. We take 12 months to grow the grapes, and then 18 months to turn it into a saleable product, and then another year to sell vintage, and then 90 days to get the payment. Who would want to be a winemaker? You wouldnt be in it for money, admits Margan. Selling more through mail order and cellar door helps in terms of full margin, but its still about brand... (Sydney Morning Herald -- Business)
National Australia Bank Turns to Loss on Bad-Debt Charge, Tax Settlement Oct 28, 2009
Oct. 28 (Bloomberg) -- , the countrys biggest corporate lender, swung to its first loss in at least nine years after charges for bad debts climbed and it set aside funds for a tax settlement in New Zealand ... It may take six months to judge whether bad debts have peaked because Australias economy is being supported by government stimulus, National Australia executives said on a conference call ... Once bad debts start coming off, if they can maintain market share with a similar margin,... (Bloomberg -- Australia & New Zealand)
Singapore, Hong Kong Aim to Succeed Where Bernanke Failed on Asset Bubbles Oct 27, 2009
Indias central bank told lenders to set aside more funds as provisions for loans to property companies to build a cushion against likely bad debts today. The Reserve Bank of India also ordered lenders to keep more cash in government bonds, taking the first step of an exit from its record monetary stimulus. (Bloomberg -- UK)
Mixed FY09 earnings tipped for ANZ, NAB Oct 26, 2009
The raisings were in reaction to escalating bad debts, losses from toxic conduit assets and funding pressures in the wake of tight credit markets. While analysts differ over whether bad debts will peak in the September 2009 half or in early 2010, all point to surplus capital that may be returned to shareholders during 2009/10 if a large bad debt buffer is no longer needed ... Credit Suisse's James Ellis says ANZ could surprise with lower than expected second half bad debts even though its... (Sydney Morning Herald -- Business)
Too Small to Survive Oct 24, 2009
The big banks seem to think that the provisioning cycle for bad debts overall is at or near a peak. Meanwhile they are writing up the value of some of the toxic securities whose prices have bounced along with almost every other asset in the known universe. (The American Conservative)
China Construction Bank Posts Second Straight Profit Gain on Record Loans Oct 24, 2009
Construction Bank, led by Chairman , rose to a 17-month in Hong Kong yesterday as investors shrugged off concerns that record lending might cause bad debts to soar. Chinas economy grew 8. (Bloomberg -- Asia)
The pyramid principle Oct 23, 2009
The big banks seem to think that the provisioning cycle for bad debts overall is at or near a peak ... It continues to book more bad debts from Countrywide, a mortgage lender it bought last year. (The Economist)
Wellink, Zalm May Struggle to Survive After Bankruptcy of Dutch DSB Bank Oct 23, 2009
DSBs annual accounts for 2007 and 2008 seem too optimistic because the bank set aside 1 percent of the value of its loans to cover bad debts, while the industry standard is about 2 percent, , professor of economics at the , wrote Oct. 20 in the newspaper. Why didnt they act. (Bloomberg -- Europe)
Bank of America reports $1bn loss Oct 17, 2009
But the bank's boss Kenneth Lewis said he was "heartened by early positive signs", referring to the levelling-off of bad debts from its credit cards. Bank of America is the fourth major US bank to report third-quarter results. (BBC News -- Americas)
Full text of Vodafone Review Report released by the government Oct 17, 2009
Charges against the Escrow include increases in provision for bad debts and exchange differences arising from delayed update of Vodafone records with government assumed debts. 13. (Ghana Web, Ghana)
Bank of Queensland 'through the worst' Oct 17, 2009
Its chief executive, David Liddy, who aims to make the bank a key force among mid-tier banks, expects the rise in bad debts to peak by the middle of next year with signs of recovery appearing among customers with mortgages and credit cards ... This resulted in bad debts as a proportion of its lending book nearly doubling to 0. (Sydney Morning Herald -- Business)
Nigeria party leader on debt list Oct 16, 2009
It brings the total of Nigeria's bad debts uncovered by Central Bank governor Lamido Sanusi to about $10bn. The anti-fraud police say they are now begin building a case against the most recently sacked chief executives. (BBC News -- Africa)
Profits up for top US banks Oct 16, 2009
It is highly exposed to consumer loans and has more bad debts than Goldman, which concentrates more on investment banking; trading and helping companies to merge with each other. In the same period a year earlier, Citigroup had made a loss of $2. (BBC News -- Americas)
Topix Index Declines, Led by Banks, Japan Airlines; Inpex Advances on Oil Oct 16, 2009
Although we are seeing some nominally good results from the U.S. financials, they also have very bad debts on their books, said , chief executive officer of Fukoku Capital Management Inc., which manages about 800 billion yen ($8. 6 billion). (Bloomberg -- Japan)
Bank of Queensland Second-Half Profit Rises 23% on Cost Cuts, Loan Growth Oct 15, 2009
We expect bad debts to peak in the coming financial year, Liddy said in a statement. Overall our asset quality is sound. (Bloomberg -- Australia & New Zealand)
Bull market or just bull? Oct 14, 2009
" The problem, it says, is financial markets rarely stand by and watch gradual changes take place. Fear or greed inevitably take over, which means financial markets are likely to be unstable for some time. Madison also says the financial crisis is not yet over. The Bank for International Settlements recently estimated we are still only about halfway through the credit crisis and there are more banking losses to come. The IMF has increased its estimates of bank losses to $US4.1 trillion ($4.5... (Sydney Morning Herald -- Business)
Wynn the masterof Macau gamble Oct 10, 2009
"Part of the provision for bad debts would be offered by Wynn Macau, which will affect its prospects," Ng said. Still, Wynn got to the market ahead of rival Sheldon Adelson, operator of Las Vegas Sands (LVS), who has indicated plans to raise at least US$2 billion - with some reports suggesting US$4 billion - selling shares in Hong Kong with a listing of his Macau interests. (Asia Times Online)
Snowball not thrown by the task Oct 8, 2009
Even with higher rates, analysts now believe bad debts won't be as bad as feared, peaking by the middle of next year. Good news on bad debts will allow Suncorp to preserve capital, giving Mr Snowball more room to move in his overhaul. (Sydney Morning Herald -- Business)
Evidence big four are among the crisis winners Oct 8, 2009
Asset quality remains crucial, and write-downs on bad debts are still depressing profits. Before the crisis, banks were posting returns on equity of more than 20 per cent. CBA led the pack in the June half, with a return of 16 per cent.. (Sydney Morning Herald -- Business)
Japan Risks Undermining Banks With Loans Repayment Moratorium, Gomi Says Oct 8, 2009
Former Prime Minister measures to force banks to write off non-performing caused an unnecessary increase in bad debts, according to Kamei. To contact the reporters on this story: in Tokyo at ; in Tokyo at ; in Tokyo at. (Bloomberg -- Japan)
European banks: Carpe capital Oct 8, 2009
They are more leveraged than their American peers, the charge goes, and far slower to recognise bad debts. This week saw rights issues launched by two of Europe s giants, BNP Paribas of France and UniCredit of Italy, for a combined 8 billion ($12 billion). (The Economist)
Snowball gets the Suncorp thaw rolling Oct 8, 2009
Even with higher rates, analysts believe bad debts won't be as bad as feared, peaking by mid-2010. Good news on bad debts means Suncorp can preserve capital and give Snowball's overhaul more scope. (Sydney Morning Herald -- Business)
Ireland's Cowen Wins First of `Big Three' With Lisbon Treaty `Yes' Vote Oct 5, 2009
Allied Irish Banks Plc and Bank of Ireland Plc, the two biggest lenders in the country, are facing surging bad debts as a decade-long real-estate boom ends. Cowen and Finance Minister are proposing to spend 54 billion euros ($79 billion) buying property loans through the new asset agency. (Bloomberg -- UK)
HSBC to sell New York headquarters Oct 5, 2009
35 billion euros) as bad debts ballooned to nearly 14 billion dollars. The bank is also looking at selling and leasing back its Canary Wharf headquarters in London and office buildings in Paris, Dow Jones reported last month, quoting a company spokesman. (India Times)
Ireland Backs EU Treaty in Second Vote, Clearing Obstacle to Enhanced EU Oct 4, 2009
6 percent and the banking system grappled with surging bad debts. The biggest factor was the economic climate, said , vice president of the Sinn Fein party, which opposed the treaty. (Bloomberg -- Germany)
Commonwealth Bank Chief Sees Risks to Australia's Economy From Overseas Sep 30, 2009
Norris said hell need at least another six months before being able to determine whether Commonwealth Bank can write back some of its provisions for bad debts or consider returning funds to shareholders ... Australian banks are weathering the global recession as higher earnings from lending to home buyers offset rising bad debts, the central bank said last week ... Provisioning charges for bad debts will probably rise in the near term, it said. (Bloomberg -- Australia & New Zealand)
Banks in Australia Remain Resilient on Lending Profits, Central Bank Says Sep 24, 2009
Sept. 24 (Bloomberg) -- Australian banks continue to weather the global recession as a surge in earnings from lending to home buyers offsets rising bad debts, the central bank said. The Australian financial system has remained resilient, the Reserve Bank of Australia said in its half-yearly financial stability published today in Sydney. (Bloomberg -- Australia & New Zealand)
How to analyse an annual report Sep 23, 2009
Any economic downturn may cause a sharp increase in provisions on bad debts. Lastly, investors need to understand that the above six pointers are just a quick guide to analysing any annual report. (The Star Online, Malaysia -- Business)
Macau's seedy casino war turns to gold Sep 22, 2009
Fate will not be kind to him I'm going to wipe him out," said his enemy, Broken Tooth Koi, to Time magazine in 1999. Broken Tooth publicly boasted of waging "a beautiful war" to control the city's seedier side. "I do what other gangsters do Everything but drug trafficking," said Broken Tooth, promoting a film about himself. Time magazine says he earned his moniker for alleged involvement in protection rackets in Hong Kong's Mongkok markets. He entered the casino world in the Philippines,... (Sydney Morning Herald -- Business)
Ireland debates banking sector Sep 17, 2009
The government wants to buy an estimated $130bn worth of bad debts from the banks and transfer this to a state-run agency, to free up banks to resume lending. But critics of the scheme say taxpayers will be saddled with huge debts, to bail out the banks and property developers. (BBC News -- Business)
Bad bank battle Sep 17, 2009
The government wants to buy an estimated 90bn euro ($132bn; 80bn) worth of bad debts from the banks and transfer this to a state-run agency - National Management Agency (Nama) - to allow banks to resume lending ... The collapse of the construction sector has left banks with bad debts ... Reduce uncertainty over bad debts. (BBC News -- Europe)
Ghost Towns Haunt Ireland as Government Prepares to Buy Real Estate Loans Sep 15, 2009
The banking system came close to collapse after the bankruptcy of New York-based Lehman Brothers Holdings Inc. a year ago today froze global credit markets and swelled bad debts. Irelands banks are now in a vegetative state, according to RBC Capital in London. (Bloomberg -- UK)
7.8% in Hawaii are uninsured Sep 15, 2009
savings on bad debts, some of which is now passed to premium payers. 15,100. (Honolulu Advertiser)
Fresh regulatory framework soon for fin conglomerates Sep 9, 2009
On securitised loans, regulatory officials have pointed out that many banks have been misusing securitisation transactions to show a healthy balance sheet, by not accounting the sale of bad debts as NPAs but showing them as profit on sales. RBI hopes that timely regulations for securitised loans will lead to better development of the nascent market. (India Times)
Ameren wants customers to pay for unpaid bills of others Sep 7, 2009
Even though the cost of bad debts has always been passed off, at least is wasn't done in such a blatant manner ... A bail out for the bad debts accumulated by the finical intuitions making loans to those who they knew couldnt pay, then getting the money from the Government when in fact they didnt pay and eventually from us the taxpayers who always end up paying. (Mattoon Journal-Gazette, IL)
Grab for market share shields banks from bad debts Sep 7, 2009
And then there are those bad debts ... Nevertheless, there has been more than enough information from the Commonwealth's accounts and the third-quarter trading updates from ANZ and Westpac to help explain why their rise in bad debts has not necessarily equalled bad news for their net profits ... Last week's update from ANZ and before that from Westpac indicated their net earnings were more than holding up against the tide of 00004000 bad debts. (Sydney Morning Herald -- Business)
RBS Told Not to Use State Aid to Call $1.6 Billion of Subordinated Bonds Sep 6, 2009
RBS was also hurt after taking over Amsterdam-based , which left it saddled with bad debts and depleted cash reserves, leading to the biggest-ever loss reported by a U.K. company. as much as 3. (Bloomberg -- UK)
BankWest facing possible class action Sep 3, 2009
Last month CBA told analysts it had made a 52 per cent increase in individual provisions for bad debts to $1. 729 billion and a 30 per cent increase in its collective provisions to $3. (Sydney Morning Herald -- Business)
Energy Industry Icon Says Truth About the State of U.S. Economy Hurts and Appears to Becoming Unhinged Sep 3, 2009
We have serious and deep rooted problems in the U.S. economy and energy market, and we need to start addressing these problems starting with cleaning up the banks, hedge funds and insurance companies bad debts and scraping the currently flawed renewable energy and carbon emissions plans being proposed by the current administration. To view Mr. Miller's Full report: U.S. Renewable Energy: A Self Inflicted Crisis in the Making go to. (PR Newswire)
Irish Government rules out nationalising banks Sep 2, 2009
Ireland's banks have been stricken by a mountain of bad debts related to the country's collapsed housing market. Public finances have a deficit of billions of euros and the once-thriving Celtic Tiger faces years of public spending cuts and tax rises to balance the books. (Sydney Morning Herald -- Business)
Cattles Plans to Close 30 Retail Branches, Cut up to 510 Jobs to Save Cash Sep 2, 2009
Cattles, closed to new lending, is selling assets and winding down units after recording an extra 700 million pounds of provisions following accounting irregularities related to not writing down enough bad debts. The lender is in talks with a group of banks led by over how to pay off 635 million pounds of debt. (Bloomberg -- UK)
RedState Morning Briefing Sep 2, 2009
Good GM is the one with good assets and a chance of actually making money; Bad GM is the one with all the garbage assets, bad debts, and onerous obligations. Good GM does not make cars using mercury, and technically never has (its predecessor Old GM did, not it), so it sees no particular reason why it should fund mercury recovery. (Human Events Online)
Australian Top Banks May Return $13 Billion of Capital, Credit Suisse Says Sep 2, 2009
Sept. 2 (Bloomberg) -- Australias largest lender, and its biggest rivals may begin returning A$16 billion ($13 billion) of capital to investors next year as bad debts ease, according to Credit Suisse Group AG. ... Those bad debts will peak this year, and after that, excess funds will become a drag on earnings per share, according to Credit Suisse ... Australias biggest banks may also be more likely to consider buying the Australian banking and insurance company that last week reported a 40... (Bloomberg -- Australia & New Zealand)
Semcan Inc. Announces Completion of Sale of Enviro-Pro-Tech, Inc. Sep 1, 2009
The purchaser paid $1,375,000 at closing and issued promissory notes of $300,000, of which $100,000 is due October 31, 2009 and $200,000 is due May 31, 2010, subject to potential partial adjustments relating to staff turnover, bad debts and earnings. The net proceeds, after commissions paid to selling broker Gibson and Associates, Inc. of Pensacola, have been used to repay term debt. (CCNMatthews Press Releases)
ANZ profit heads for $3bn Sep 1, 2009
ANZ is on track to deliver cash earnings of about $3 billion this year, matching last year's result, as the pace of new bad debts slowed and revenue surged, mostly on the back of a currency boom and derivatives trading. Significantly, chief executive Mike Smith told investors the bad debts that had been ravaging the profits of the nation's banks might have peaked, although losses on soured loans were likely to remain at present levels until about the middle of next year ... "In Australia and in... (Sydney Morning Herald -- Business)
Economy calls for bolder reforms Sep 1, 2009
Even if President Hu Jintao and Premier Wen Jiabao have promised no imminent economic policy shifts, the People's Bank of China and the Banking Regulatory Commission, urged by a powerful group of economic pundits, have warned the country's lenders that they are facing rising danger of bad debts in 2010, as a result of their releasing 7 trillion yuan more of credit line in the first six months this year. The watchdogs have demanded the bankers replenish capital to solidify fund adequacy. (People's Daily Online, China)
