Jefferies sees steady margins for Australian banks in FY25

Judo Capital Holdings

08/10/2025 20:28

** Analysts at Jefferies expect Australian banks' profit margins (net interest margin) to stay roughly the same in FY25 compared to FY24

** Says lending to small and medium businesses becoming more profitable despite fears competition could hurt bank margins

** Brokerage prefers lender National Australia Bank  NAB.AX and Judo Capital  JDO.AX  over others, since they have strong momentum in SME lending and are better positioned in the segment

** YTD, NAB has gained 19.7%, while JDO has lost 5.8%; the financials sub-index .AXFJ is up 12.8%, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com;))