National Australia Bank (ASX: NAB) CEO John Stewart set aside a provision of $820 million for credit risk on Friday July 25, 2008. This indicates there may be more subprime losses to come. Stewart commented, “This is the bottom for us for housing in the U.S. because we are now cleared out.” That’s quite a statement. Especially seeing as Stewart considers the US to be less than half-way through this crisis. Total losses equal US$450 million.
July 28th, 2008 | Al Robinson | 3 comments | ContinuedAll Posts Tagged With: "NAB"
Australian Banks Must Increase Fees or Expand Loans to Remain Profitable
The news that’s all the rage today is Westpac’s (ASX: WBC) $19 billion bid for St. George (ASX: SGB). But in an age of rising interest rates and credit contraction, how will Australian banks remain profitable… Fees. If profitability on loans is declining (and it is), the banks could make it up charging you more fees. The growth rate in bank fees has actually declined, if you peruse the data from the Reserve Bank.
May 13th, 2008 | Dan Denning | 1 comment | Continued