Citi backs ANZ, NAB ahead of Australia bank earnings season

National Australia Bank

11/10/2026 19:35

** Citi says Australia's upcoming bank earnings season is likely to be "somewhat transitional," with benefits from portfolio repricing and higher nominal growth expected to become more evident in FY27
** Broker says household resilience remained solid despite higher interest rates and cost-of-living pressures, leaving asset quality benign across the sector
** While competition and deposit mix pressures persist, Citi says ANZ Group ANZ.AX and National Australia Bank NAB.AX appear better positioned due to their relative growth and funding mix
** Mortgage competition remains a headwind, Citi says, but notes refinancing activity near decade lows and front-book lending activity slowing, potentially limiting pressure on margins
** Citi's earnings forecasts are modestly above consensus for ANZ, NAB, Westpac WBC.AX and Bank of Queensland BOQ.AX, largely due to lower bad and doubtful debt expense assumptions
** Forecasts Macquarie's MQG.AX first-half earnings to be 4% above consensus, driven by higher asset management performance fees and stronger commodities trading income

 (Reporting by Roshan Thomas in Bengaluru; Editing by Mark Porter)
 ((Roshan.Thomas@thomsonreuters.com;))