National Australia Bank reported that its third-quarter cash profit dropped by three percent due to a 21 percent rise in problem debts. It posted cash profit of $1.22 billion for the quarter, with bad debt of $174 million. The other major Australian banks, Westpac, ANZ and Commonwealth Bank, also announced increases in bad debts in the past week.
Meanwhile, ANZ confirmed it is conducting a review of its retail operations in Asia as it seeks to cut costs and increase returns, according to the bank's head of institutional business. "We are doing a strategic review on retail," Mark Whelan said in an interview with Reuters.
State Bank of India (SBI) reported lower-than-expected bad loans on Friday but analysts have warned that further bad loans could emerge at the bank when a new boss is appointed, according to the Economic Times. India's government is due to replace the state-run bank's chairman, Arundhati Bhattacharya, when her three-year term ends in October. "Management transition is the biggest issue with PSU banks. In the past, we have seen banks reporting very good set of numbers by outgoing CMDs (mainly in the last two quarters). The trend reverses when new management is in place," a research note by Religare Capital Markets, quoted in the Economic Times, said.
The Nigeria Deposit Insurance Corporation (NDIC) is raising the maximum deposit insurance coverage for each depositor of Primary Mortgage Banks (PMBs) to a value of 500,000 naira ($1,557) from 200,000 naira so that NDIC can ensure that all deposit-taking financial institutions in the country adhere to sound risk management practices, according to Nigerian newspaper, ThisDay.
China lenders look at social media contacts to assess risk
SEC rules out crowdfunding in Nigeria for now
Brexit bounce: Global fintech firms look to Ireland to establish HQs
PwC sued over bank's collapse
Half of big banks unprepared for accounting shake-up
Pop Bari sells bad loans with state guarantee, sets stage for MPS
Biometric technology replacing pins and passwords at StanChart
IMF to assess strength of New Zealand financial services sector
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