ANZ Reports Q1 Asset Impairments Surge Amid Mortgage Restructuring
ANZ Group, Australia's fourth-largest lender, has seen a significant increase in asset impairments, driven by a spike in mortgage restructuring, reaching the highest levels since 2021.
Key Points:
* Gross impaired assets rose to A$1.90 billion ($1.21 billion) for the quarter ending December 31, 2022.
* Home loan delinquencies over 90 days remained low in Australia but increased in New Zealand.
* Net loans and advances grew by 4%, primarily driven by institutional lending.
* Customer deposits increased by 2%.
* CET1 ratio stood at 11.5% at December 31, down from 12.2% in September.
The rise in interest rates has boosted interest income from loans but has also led to slower credit growth and increased bad debts. ANZ's financial results highlight the ongoing challenges faced by banks in managing risk amidst a changing economic landscape.