Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Tough outlook for building societies

Staff Reporter 3 minute read

A new report on building societies has labelled the sector’s outlook negative.

According to Moody’s Investors Service’s Australian Building Societies: 2009 Industry Outlook , released yesterday, the credit forecast for building societies is negative as a result of the weakening economy and increasing funding pressure.

“After years of enjoying ample lending growth, assisted by rising house prices and falling unemployment, the building society sector is now experiencing a period of much slower loan growth, which is impacting profitability levels,” Moody’s assistant vice president Marina Ip said.

ABACUS CEO Louise Petschler however said the industry body did not share Moody’s view of the outlook for the sector.

Advertisement
Advertisement

“The economic environment clearly makes for more difficult operating conditions than in previous years,” she said. 

“[But] they have very strong capital levels, non-accrual loan levels at less than a third of the banks and solid profitability I’d say that Australian building societies are in very good shape.”

 

Tough outlook for building societies
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Carolyn Murphy ta Teachers Mutual targets brokers in digital bank launch

Hiver, a new digital bank to be launched under Teachers Mutual, i...

mortgage money house Qld real estate body calls for stamp duty reform

The REIQ has slammed the Queensland government for failing to act...

Alexis Holloway ta Pallas Capital appoints senior credit manager

The non-bank lender has appointed a senior credit manager whose r...