BNZ increases profit 6 months to March to $562 Million up 6% on a year ago, even as NZ economy hit by Covad crisis & lockdown. (While it's Aussie parent, NAB halved it's profit)
Re all bank stocks incl HGH
I am struggling to understand how the direct losses have been incurred from Covid 19 already.
Provisions get made and they are best estimates etc but surely the amount of actual definite losses at this point is SFA
Re all bank stocks incl HGH
I am struggling to understand how the direct losses have been incurred from Covid 19 already.
Provisions get made and they are best estimates etc but surely the amount of actual definite losses at this point is SFA
Yes, they're provisions based on estimates of the effect on the economy and the overall creditworthiness of their lending portfolio. The provisions may prove to be excessive, adequate or inadequate but in previous instances its sometimes been an opportunity to clear the decks and err on the side of caution, ie over rather than under-provide.
I am surprised to read Sir John Key say in the Herald today that the Government has banned banks to lend to both commercial property and agriculture, under the business loan guarantee scheme. It seems very odd to include agriculture in this !
I am surprised to read Sir John Key say in the Herald today that the Government has banned banks to lend to both commercial property and agriculture, under the business loan guarantee scheme. It seems very odd to include agriculture in this !
Logical, I would have thought?
The loan guarantee is to enable struggling businesses to access bank loans and retain jobs.
Agriculture is doing very well and commercial properties are purely investment.
The loan guarantee is to enable struggling businesses to access bank loans and retain jobs.
Agriculture is doing very well and commercial properties are purely investment.
Agree with the commercial property but not agriculture. Some agriculture businesses are struggling with all sorts of unforeseen issues related to the lockdown, transport and employment problems. Don't see why they had to be excluded.
I am surprised to read Sir John Key say in the Herald today that the Government has banned banks to lend to both commercial property and agriculture, under the business loan guarantee scheme. It seems very odd to include agriculture in this !
there all trying to get farmers to reduce debt , its a big risk for banks and govt if ag rolls over.
Originally Posted by Balance
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