NAB’s worrying message for Chalmers

next week, it might be a good idea for him to take NAB boss Ross McEwan aside and get his views on how much longer small and medium size businesses will be able to withstand soaring energy costs.

If Chalmers wants a view on what will happen to the country’s business sector if he fails to find a solution to rampant energy prices, there are few better people for him to talk to than McEwan. In its latest profit results, NAB boosted its collective provisions to recognise the fact that its loan book was likely to come under growing stress, as rising interest rates cause economic activity to slow, and house prices to fall.

Now, NAB’s decision to set aside $150 million in provisions to cover this growing energy risk is extremely prudent at a time when wholesale electricity and gas prices in Australia’s main grid have tripled in the three months to June compared with the same period a year ago.And the move likely reflects NAB’s view that higher energy prices are likely to be around for the medium term, rather than being a short-term glitch.

JEChalmers mate, just cap the prices at just above long term assumptions…. Won’t impact valuation or capex decisions as they are based off long term values…. 😉 yet will bring down spot…..

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Energy tax is not a priority, Chalmers saysTreasurer Jim Chalmers says meetings with foreign peers about the global energy shock have reinforced the need to intervene to reduce power prices, but a tax is not his preference. Taxing carbon is the same as increasing electricity prices. What we need is a credible transition plan to nuclear. price lock would be handy
Source: FinancialReview - 🏆 2. / 90 Read more »