Fitch Ratings’ says Australia’s banks’ results show resilience and support their current ratings. In brief:
- expect earnings headwinds to continue for Australian banks in 2025
- earnings are likely to be broadly stable
- net interest margins (NIM) are likely to contract further in 2025 and 2026 as interest rates are cut .. the impact should be limited … competition is also likely to weigh on NIMs
- asset quality showed signs of stabilising in 1HFY25
- prudent capital positioning amid heightened global uncertainty
- funding metrics broadly stable
- liquidity levels remained strong, further cushioning against global economic uncertainties
This article was written by Eamonn Sheridan at www.forexlive.com.
