0035 GMT - Higher interest rate expectations and swap curves have resulted in more favorable term deposit margins for Australian lenders, say Macquarie analysts in a note. However, over the longer term, Macquarie expects TD pricing to increase or for customers to switch to higher-rate products, suggesting margin upside is skewed to the near term rather than a structural upside. "Additionally, we continue to expect a mix shift towards more expensive deposits to impact bank margins, albeit at a slower rate." On credit, Macquarie sees strong growth across both mortgages and business lending has continued to result in funding deficits across most banks. "As a result, we expect banks to continue to compete for deposits and for deposit-related headwinds to persist," Macquarie adds. (alice.uribe@wsj.com)
(END) Dow Jones Newswires
April 30, 2024 20:35 ET (00:35 GMT)
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