Australian banks gain on Citi's hiked earnings forecast

Westpac Banking

17/09/2026 05:08

** Australia bank stocks .AXFJ rise as much as 1.7%, their biggest intraday pct gain since August 31
   ** Citi raises earnings forecasts for major banks by 1%-2%, expecting higher business credit growth and stronger net interest margins due to higher rates and swap yields
** Citi sees additional RBA rate hike in September
** Brokerage says banks gain from growth in high-profile sectors such as data centres and utilities, along with services sectors where credit demand is increasing
** Citi upgrades National Australia Bank NAB.AX to "buy", saying it is best positioned to benefit
** NAB gains as much as 2.3%, highest since September 8
** YTD, AXFJ down 1.4%

 (Reporting by Aamir Sheik Khalid in Bengaluru)
 ((Aamir.SheikKhalid@thomsonreuters.com))