Australian banks ‘escaped the worst’

By |

By Robert Carry

Australian banks have escaped the worst of the financial crisis and bad debts are likely to begin to drop off, according to Westpac chief executive Gail Kelly.

The comments came in the wake of Westpac’s annual report which revealed a 10.7% decline in profits to $3.45bn, due mainly to bad debt.

Kelly added that although the banking sector was set to stabilise, future profits were likely to be more modest than in the years prior to the financial crisis.

She added, “One thing’s for certain, we won’t be going back to the world the way it was before.”

According to the Sydney Morning Herald, Westpac’s bad-debt charges for the year came in at $3.2bn with customers struggling with repayments primarily at the beginning of the year.

Although Kelly predicted 2010 to be a “tough year from a revenue growth point of view,” she broke ranks with other bank leaders by welcoming the Reserve Bank of Australia’s rate hike.

She described the RBA’s move as “modest and moderate”. Shares in Westpac finished 1.4% higher at $25.79 on release of the report.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : west rockhampton , padbury , east victoria park , rockville , campsie

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here