Profit Reports Due This Week

The impact of natural disasters in Australia has raised havoc in the payment collection of banks.  Many banks are considering reducing the interest rate on payments or giving loan maturity allowances.

The Australian Prudential Regulation Authority or APRA, however, has sent a fair warning to the bank executives saying that there should not be any special treatment to customers. APRA added that this can obscure prudent and regulatory reporting of impaired and past-due loans.

According to APRA, some banks are even thinking of halting the debt collection process.

The numbers show that there has been a slowdown in mortgage lending, the slowest it has been since the 1980s.  Banks are currently struggling to find ways to attract customers.

This week, the banking industry shall be submitting their yearly profit report.  Commonwealth Bank has already fulfilled this requirement reporting a $7 billion full-year profit (ending in June 2012), which is a $300-million increase compared to last year’s.

ANZ, National Australia Bank (NAB), and Westpac are expected to send their reports soon.  ANZ and NAB profits are seen to be around $1.4 billion while that of Westpac may be around $1.55 billion.

More than ever, these reports are vital to the investors whether the banks have the potential to lend money.