Morgan Stanley flags stronger loan growth at Australian banks; financials at one-week high

Westpac Banking

01/05/2026 04:20

** Australian financials .AXFJ rise as much as 0.5% to their highest since April 23

** Morgan Stanley says mortgage growth for sector majors improved to ~5.5% in March, with ANZ ANZ.AX, National Australia Bank NAB.AX and Westpac Banking WBC.AX meeting H1 forecasts, but trailing overall mortgage market

** Says weaker macroeconomic outlook will cause slowdown in loan growth

** Adds household deposits at major banks rose ~3% in March quarter, behind Australian financial system growth of 4% and 6% growth recorded in PCPs

** Three of "Big Four" banks climb 0.1%-0.4%; ANZ drops 1.1%

** AXFJ up 3.1% YTD

 (Reporting by Keshav Singh Chundawat in Bengaluru)

 ((Keshav.singhchundawat@thomsonreuters.com))