Thanks for the clearer explanation as I was trying to get my head around that concept of good outcomes pushing up provisions. Seems to be a conservative treatment, as a lot of the borrowers are still in similar positions today with gov payments for lock downs and much lower than expected unemployment. Given the loans are for 12 months or so, I do wonder if a lot of the loans will roll off with lower than expected loss rates. Do they then just keep adding and adding provisions to the existing book?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)