Westpac Expects Higher Loan Losses as Iran Conflict Slows Australian Economy
By Stuart Condie
SYDNEY--Westpac expects a rise in credit losses in its fiscal first half results as customers feel the impact of the Iran conflict on Australia's economy.
Australia's second-largest lender on Tuesday said that it expected to record a credit impairment charge of about 10 basis points of average gross loans when it reports its fiscal first half results in May.
"With the supply shock from the energy market disruption expected to result in higher inflation and higher interest rates, an expected slowing in economic growth will create a more challenging environment for some customers," Westpac said.
The bank said that it had created a new portfolio overlay for energy intensive sectors, which have been hit by surging costs since the U.S. and Israel attacked Iran six weeks ago.
Westpac said that first-half lending grew 4% and deposits grew 3%.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
April 13, 2026 18:45 ET (22:45 GMT)
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