Australian banks fall as Macquarie forecasts weaker earnings

Commonwealth Bank of Australia

27/05/2026 05:04

** Australian banks .AXFJ tumble up to 1.9%, heading for their sharpest drop since May 13 and a third straight session of losses
** The "big four" banks slip between 0.9% and 1.7%, with Westpac WBC.AX leading the declines
** Macquarie expects weaker housing mortgage volumes, increased competition to drive down bank earnings by 1%-2% in FY27 and nearly 2%-4% in FY28
** Sees biggest impact on Commonwealth Bank of Australia CBA.AX and Westpac, least on National Australia Bank NAB.AX
** Expects interest rate hikes and tax changes to lead to a 20% drop in housing turnover and 5% fall in house prices
** Expects new lending flows to drop ~30%, and downgrades CY27 housing credit growth to ~3.5% from ~5.5% - Macquarie
** Banking shares down 1.6% YTD vs the benchmark's .AXJO 0.5% dip

 (Reporting by Keshav Singh Chundawat in Bengaluru)
 ((Keshav.singhchundawat@thomsonreuters.com))