Slow-down 'imminent’

Press, 19 February 1986, Page 35

Slow-down 'imminent’

PA Auckland An economic slow-down appears imminent, says the chairman of Westpac Merchant Finance, Ltd, Mr R. H. V. Douglass. In the annual report he says a reduction in interest rates is' likely to follow a decrease in inflation and an easing of demand for credit. Recently announced measures,toallow additional banking licences and virtually unrestricted entry by* additional foreign banks and merchant banks will ensure that competition in the financial sector will intensify, says Mr Douglass. However, he is confident Westpac will have another profitable year.

Tax-paid profit increased 44.9 per cent to $7,005,000 in the year ended September 30. The profit was achieved after providing tax of S3M, a writing down of SIM for unrealised losses on Government securities held for trading and SIM as a further contingency provision covering any unexpected loan losses. , '

Much of the increase occurred in its subsidiary, Westpac Securities, Ltd, which responded well to the deregulated environment and increased its contribution to over-all profit to S3.IM from the $900,000 in 1984. Total assets increased 80 per cent to $753M. Shareholders’ funds increased 60 per cent to $40.3M.