Australian and NZ Firms Signal Conflict Related Strain
Qantas and Westpac are among firms reporting pressure from the Middle East conflict. Rising costs and supply issues are forcing profit outlook adjustments.
Corporate entities across Australia and New Zealand are reporting significant financial strain as the conflict involving the United States, Israel, and Iran drives up fuel costs and dampens consumer confidence. Major players in the banking and aviation sectors have issued warnings regarding earnings volatility and rising operational expenses linked to the geopolitical instability in the Middle East.
WESTPAC BANKING CORP has identified energy market shocks as a primary driver of profit pressure for the first half of the financial year. The lender noted that interest-rate volatility has weakened net interest margins within its treasury and markets division, leading to the highest level of credit provisioning for potential bad debt since the pandemic.
