Fitch Ratings says Australia’s banks’ results show resilience

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.