Westpac Banking Corporation (ASX:WBC) says its New Zealand unit is likely to suffer credit losses of up to $74 million as a result of the Christchurch earthquake in New Zealand last month.
Westpac says the exact financial impact is difficult to accurately assess as responses are still being developed and insurance recoveries are being worked through.
However, the latest 6.3 magnitude earthquake in Christchurch is believed to have caused more damage than the earlier earthquake that affected Christchurch in September last year.
Westpac has advised that the impact on Westpac New Zealand Ltd's tier 1 capital position is not expected to be impacted as bad debt provisions can be absorbed within the units anticipated profit.
Westpac posted a $6.4 billion net profit in the 2010 financial year.
