Macquarie expects Aussie bank earnings to face double-digit hit

Bank of Queensland

24/04/2023 04:32

** Analysts at Macquarie say Australian banks potentially
face 15-20% earnings hit as poor mortgage returns reflect
pressure on profit margins
    ** Macquarie expects Commonwealth Bank of Australia  CBA.AX 
and Westpac  WBC.AX  to be more affected in a stagnant mortgage
market than peers ANZ Group  ANZ.AX  and National Australia Bank
 NAB.AX  
    ** The analysis comes after smaller domestic bank Bank of
Queensland  BOQ.AX  flagged falling net interest margins in a
difficult macro
    ** While bank managements are optimistic about rationality
returning to the mortgage market, pricing may stay irrational
longer than people anticipate - Macquarie
    ** Brokerage further expects the banks' interim results in
May to show the benefit of a high-cash rate environment that
started a year ago
    ** Macquarie finally sees downside risk to its below
consensus estimates for banks earnings in FY24 and FY25
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))