Commonwealth Bank of Australia, which owns ASB in New Zealand and is led by former Air NZ and ASB CEO Ralph Norris, confirmed it expected bad debt charges to rise to around A$2.5 billion in the current financial year, accelerating a sharp fall in its share price yesterday after its on again-off again share issue debacle damaged investor confidence. CBA's shares closed down almost 10%. Commonwealth Bank said the new forecast was well above its previous forecast for up to A$2.1 billion and above the analyst consensus of A$2.023 billion. The new forecast included a A$365 million write-off for ABC Learning Hybrid Notes in the current year. * This article was first published earlier today in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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