Westpac’s latest general disclosure statement shows net profit for the quarter fell 3.4% to $115 million as impairment charges on loans rose to $91 million from $22 million in the December quarter of 2007.
Of the impairment charges, $21 million were from residential mortgages, $15 million from other consumer loans and $55 million from business loans.
Westpac’s total impairment provisions climbed to $398 million from $234 million at December 31 2007.
Impaired mortgages are still a fraction of Westpac’s total mortgage book of $26.52 billion at December 31. The bank had a further $5.29 billion in mortgages approved but undrawn at that date.
Using Reserve Bank figures as a proxy for the market, Westpac’s share of the mortgage market slipped to 17.03% from 17.27% at September 30.
Mortgages with loan-to-value ratios (LVRs) above 90% at December 31 jumped to $3.24 billion, or 10.2% of the total book, from $2.68 billion, or 8.5% of the total book, at September 30. Loans with LVRs above 80% rose to 28.2% of the book at December 31 from 25% at September 30.
