Fitch Ratings' says Australia's banks' results show resilience and support their current ratings. In brief:

  • expect earnings headwinds to continue for Australian banks in 2025
  • earnings are likely to be broadly stable
  • net interest margins (NIM) are likely to contract further in 2025 and 2026 as interest rates are cut .. the impact should be limited ... competition is also likely to weigh on NIMs
  • asset quality showed signs of stabilising in 1HFY25
  • prudent capital positioning amid heightened global uncertainty
  • funding metrics broadly stable
  • liquidity levels remained strong, further cushioning against global economic uncertainties
Fitch rating agency revises Australia's outlook to negative (was previoulsy 'stable'), affirms ratin
Source: Forex Live