ANZ Banking Group has blamed a forecast $100 million rise in bad debt charges on a flagging resources sector and slower economic growth.
In February, ANZ was looking at a group credit charge of $800 million in its first half accounts.
Now it’s looking at an additional charge of at least $100 million, reflecting its exposure to local and multinational resources-related companies.
‘While the overall credit environment remains broadly stable, we are continuing to see pockets of weakness associated with low commodity prices in the resources sector and in related industries,’ Chief Financial Officer Graham Hodges said on Thursday.
The bank was continuing to monitor its exposures and will update the market on any changes in its credit outlook.
Commodities and oil prices have slumped to decade lows in recent months as the sector undergoes a prolonged downturn on the back of waning demand in China and rising global supplies.