Australian banking stocks tumble

AFP, SYDNEY: Shares in Australia’s big four banks tumbled Friday, led by ANZ, as the market reacted to the financial institution’s weaker-than-expected profits and a surprise Aus$3 billion (US$2.2 billion) capital-raising to meet tougher regulatory requirements. Financial regulator the Australian Prudential Regulation Authority said last month the nation’s biggest banks had to hold more capital reserves as a buffer against mortgages, as part of a global move to strengthen the sector after the financial crisis. ANZ’s capital raising surprised the market with shares in the bank falling as much as 8.5 per cent to Aus$29.80 on Thursday, the biggest fall in almost seven years according to Bloomberg, after exiting a trading halt. The stock closed 7.49 per cent lower to Aus$30.14. Shares in the Common-wealth Bank of Australia and Westpac closed 3.84 per cent and 3.26 per cent lower
respectively.

Australian banking stocks tumble

AFP, SYDNEY: Shares in Australias big four banks tumbled Friday, led by ANZ, as the market reacted to the financial institutions weaker-than-expected profits and a surprise Aus$3 billion (US$2.2 billion) capital-raising to meet tougher regulatory requirements. Financial regulator the Australian Prudential Regulation Authority said last month the nations biggest banks had to hold more capital reserves as a buffer against mortgages, as part of a global move to strengthen the sector after the financial crisis. ANZs capital raising surprised the market with shares in the bank falling as much as 8.5 per cent to Aus$29.80 on Thursday, the biggest fall in almost seven years according to Bloomberg, after exiting a trading halt. The stock closed 7.49 per cent lower to Aus$30.14. Shares in the Common-wealth Bank of Australia and Westpac closed 3.84 per cent and 3.26 per cent lower respectively.