Banks count costs of ABC
(10 November 2008 – Australia) The Big Four Australian banks have confirmed their exposure to fallen ABC Learning, which now totals an estimated A$762 million.
Following the appointment of voluntary administrators and receivers to ABC Learning Centres, the big banks have had to count the costs of their potential exposure.
Commonwealth Bank of Australia confirmed the largest of the Big Four banks’ exposure to ABC, with its Senior Debt exposure to ABC of approximately A$240 million.
Westpac confirmed it has exposure to ABC of approximately A$200 million, while NAB also confirmed it has an exposure to the group of approximately A$140 million.
Both Westpac and NAB said that they will review the implications of the appointment of the voluntary administrators to ABC and adjust existing provisions as required.
ANZ also advised it has credit exposures to ABC of approximately A$182 million.
For ANZ, ABC Learning Centres Group was treated as a non-performing loan and an individual provision taken as part of ANZ’s 2008 results. ANZ will also make further adjustments to provisions as required.
In announcements relating to other company collapses, NAB said it has an exposure of approximately A$20 million to property management group Rubicon Holdings, an offshoot of also-failed Allco Finance, and is taking a provision against a proportion of this debt.
ANZ also confirmed its exposure to Allco is insignificant, while NAB said that no losses are anticipated.
CBA said that its exposure to Allco was approximately $170 million, while Westpac counted its exposure at approximately $200 million.
Commonwealth Bank of Australia confirmed the largest of the Big Four banks’ exposure to ABC, with its Senior Debt exposure to ABC of approximately A$240 million.
Westpac confirmed it has exposure to ABC of approximately A$200 million, while NAB also confirmed it has an exposure to the group of approximately A$140 million.
Both Westpac and NAB said that they will review the implications of the appointment of the voluntary administrators to ABC and adjust existing provisions as required.
ANZ also advised it has credit exposures to ABC of approximately A$182 million.
For ANZ, ABC Learning Centres Group was treated as a non-performing loan and an individual provision taken as part of ANZ’s 2008 results. ANZ will also make further adjustments to provisions as required.
In announcements relating to other company collapses, NAB said it has an exposure of approximately A$20 million to property management group Rubicon Holdings, an offshoot of also-failed Allco Finance, and is taking a provision against a proportion of this debt.
ANZ also confirmed its exposure to Allco is insignificant, while NAB said that no losses are anticipated.
CBA said that its exposure to Allco was approximately $170 million, while Westpac counted its exposure at approximately $200 million.
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