Australian Suncorp-Metway says impairment charges in its core banking arm increased in the third quarter as higher interest rates led to a jump in mortgage arrears. The group booked a AU$20m (US$17.7m) impairment loss for the three months to the end of March in core banking, which includes personal, retail and SME (small to medium-sized enterprise) banking. Impairments for the year to date are A$22m. Suncorp said there had been an “increase in mortgage arrears in the last quarter, off a low base, as interest rates have increased and the benefits of the government stimulus payments have been removed.”
Australian hit on mortgage arrears due to higher interest rates
May 6, 2010, 11:40am
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
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Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio