Westpac cuts commercial property exposure

By BN | 5/11/2009 12:00:00 AM | 0 comments

Westpac revealed yesterday in its full-year results that its commercial property exposure dropped from 10% last December to 9.1%.

Chief executive Gail Kelly said that the bank is keen to support existing customers but is not looking to aggressively grow new business.

According to the AFR, stressed commercial property exposure has risen from $4 bn at its May half-year results to $7.5 bn. The biggest areas of stress are developments in WA, Qld and NZ.

The bank has altered its commercial property lending policies by cutting LVRs, lifting minimum interest cover ratios, cutting the maximum term for new lending and keeping a closer eye on property provisioning.

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