NAB flags $503 million impairment hit from Mideast war
NAB expects a $503 million impairment charge as Mideast volatility impacts the economy. The bank will now raise capital to shore up its balance sheet.
NATIONAL AUSTRALIA BANK LTD, the largest business lender in Australia, announced on Monday that it expects to incur credit impairment charges of A$706 million ($503 million) for the first half of the year. The bank attributed the rise in provisions to global economic instability triggered by the war involving Iran.
The lender stated that the likelihood of a domestic economic downside scenario is rising as Middle East tensions continue to roil financial markets. Consequently, the bank is preparing for an increase in bad debts. Following the announcement, shares of the company fell as much as 3.8% in Monday trading, while the broader S&P/ASX200 index was off 0.24% and the financials index saw a decline of 0.67%.
