Australia and New Zealand Banking Group (ANZ) on Thursday said bad-debt charges for the first half of 2016 could almost double due to a downturn in the resources sector, a problem analysts warn could snowball across the banking sector.
A plunge in the prices of two of Australia's biggest exports - iron ore and coal - has raised the spectre of mounting defaults by mining companies and a follow-on impact on bank earnings after years of record profits.
Shares in No.4 lender ANZ dived the most in over seven months after it said bad debt charges would likely blow out to A$900 million (US$676 million) for the first half of the current financial year, up from its A$800 million forecast only a month ago. It cited a "small number" of resources-related exposures.
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A plunge in the prices of two of Australia's biggest exports - iron ore and coal - has raised the spectre of mounting defaults by mining companies and a follow-on impact on bank earnings after years of record profits.
Shares in No.4 lender ANZ dived the most in over seven months after it said bad debt charges would likely blow out to A$900 million (US$676 million) for the first half of the current financial year, up from its A$800 million forecast only a month ago. It cited a "small number" of resources-related exposures.
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