Value Investor: Are ANZ's provisions prudent?

A downtrend in provisioning for bad and doubtful debts by major banks has reduced the sector’s resilience to economic shocks and downturns.

ANZ is reporting outstanding profits but below the surface its resilience is getting progressively weaker. The major banks have been reducing provisioning as bad debt experience has reduced. This downtrend in provisioning for bad and doubtful debts cannot continue much further and reduces the sector’s ability to withstand economic shocks and downturns.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles