ANZ Banking Corporation Ltd
(ASX:ANZ) has warned further aftershocks from the global economic crisis could be expected this year despite a recovery in financial markets.
The bank’s concerns come as it announces the appointment of former Citigroup executive Mark Robinson as its South and South East Asia chief.
CEO Mike Smith says the effect of the financial crisis is still being felt in the world’s major economies, with high levels of sovereign debt and more bad-debt charges for banks.
Mr Smith says growth in advanced economies this year is expected to be the weakest of the modern era at about 1-2%, with concerning large government deficits in countries like the US and Britain.
While the global banking system has stabilised, the International Monetary Fund is still tipping $US3.4 trillion in write-offs by banks compared to the current level of $US1.7 trillion.
Mr Smith is forecasting $US2-2.5 trillion in write-offs.
But he says the outlook is brighter for Asia, where ANZ is rolling out its super-regional strategy and aims to earn 20% of its profits by 2012.
For the 12 months to September 30, 2009, ANZ Bank reported a profit of $2.943 billion.
