1 Sep 2009

ANZ sets aside $532m for bad debts

4:54 pm on 1 September 2009

The ANZ National Bank is ready to set aside more provisions for bad debts over the next year, as its customers struggle through the recession.

New Zealand's largest bank made a profit of $478 million in the nine months to June, down 43% compared with the same period last year.

Bad debt provisions more than tripled to $532 million, while it also took a $147 million charge to cover its obligations to investors in ING's two frozen funds.

ANZ National Bank chief executive Jenny Fagg says households and businesses are still coming to terms with the effect of the global downturn.

More than 40% of the provisions are for commercial and institutional customers, 44% for retail customers and 8% for rural customers.