This decline in profit reflects a significant increase in credit provision charges to $A1.674 billion primarily to increase credit reserves for COVID-19 impacts ($A1.031 billion). Additionally, the valuation of investments in two Asian associates (in Indonesia and Malaysia) were impaired by $A815 million, largely due to the impact COVID-19 is having in those markets.
The bank’s capital position was above the Australian Prudential Regulation Authority’s (APRA) ‘unquestionably strong’ measure at 10.8 per cent. Earnings-per-share decreased 60 per cent to A49.9 cents.
You can see key aspects of the results in the infographic below.