The ABC and Westpac Banking Group are reporting a massive loss in revenue due to their debt load.
The Australian Financial Reporter reported the two major banks reported losses of $1.6 billion and $1 billion in the three months to June, respectively.
Westpac’s financial results showed it posted a loss of $2.6bn in the third quarter, a fall of $400 million or 14 per cent.
ABC financial results also showed a loss, a loss.
The two banks have struggled with the debt burden, with the ABC reporting last week it had more than $2 billion of loans to repay, while Westpac said it had $1bn in debt.
ABC News’ Tom Hickey reported the financials from the banks, which were also revealed in the report.
The report revealed Westpac was the most indebted bank in Australia, with $3.8 billion in debt outstanding, while ABC News reported the debt load was $1,000 billion.
Westmacorp said in a statement that the debt and asset management businesses had been restructured in line with our strategic objective of achieving a debt reduction rate of less than 50 per cent and reducing total loan volume to $1 trillion by 2020.
ABC financial results for the three-month period were not immediately available.
A spokeswoman for Westpac Bank said the banks would be releasing a further statement in the coming days.
Westpac said in its statement that it has undertaken a range of financial measures to reduce its debt burden and achieve a debt elimination target, as well as restructuring its lending business.
In its statement, Westpac also said that it will continue to implement its financial plan and will continue the ongoing transformation of our debt management and restructuring business.
“The financial results of the Westpac Banks will be released in the near future,” the bank said.
Bank of Queensland’s chief executive officer, Peter Wilson, said the bank’s financials showed the financial pressures facing the banks were “very high”.
He said the loss was due to the banks’ “challenging balance sheet”.
“We expect to have the financial results published on Tuesday and that will be a more comprehensive statement, but this is very difficult to predict,” Mr Wilson said.
“We’ve been very patient in the financial statements and we’re doing our best to stay on top of it.”
“As we have said, the bank has made significant investments in capital, which we’ve put to good use, and we are working hard to achieve that outcome.”
Bank spokeswoman, Angela Dore, said it was not possible to quantify how much of the bank was impacted by the debt.
“We can’t put a number on how much the bank had to absorb because we don’t have that information, but it is the majority of the company,” Ms Dore said.
“It’s very hard to quantify what the impact of that is, because we haven’t been able to get the information.”
We don’t know what the bank did differently.
“Mr Wilson said the impact on the bank would be “quite large” in the medium term.
He also said the Westmacorps decision to take on more debt had been made in the best interests of the Australian economy.”
This is about the health of our economy, about the quality of our services, about providing the best possible banking environment for the customers we serve,” he said.