Aussie Banks Targeted by Short Sellers Ahead of Earnings: Chart

General Views Of The Reserve Bank of Australia Headquarters Ahead Of Policy Decision

The Australian national flag flies in front of the Reserve Bank of Australia headquarters in Sydney, Australia.

Photographer: Brendon Thorne/Bloomberg

As Australia’s largest banks report results this week, bearish wagers are on the rise. The level of short selling has surged an average 41 percent since the start of the year, Markit Ltd. data compiled by Bloomberg show. The strategy may backfire if upcoming results and forecasts from the so-called Big Four lenders exceed expectations, according to analysts at the wealth management unit of Macquarie Group Ltd. Commonwealth Bank of Australia, National Australia Bank Ltd., Westpac Banking Corp. and Australia & New Zealand Banking Group Ltd. release results in May.

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