To The Moon

Market Overview

Australia’s major banks are heading into the November earnings season with strong momentum. The market anticipates solid results for FY25, driven by resilient credit growth, disciplined deposit pricing, and robust Treasury and Markets income.

However, analysts warn that FY26 may bring challenges, with moderating revenue growth and margin pressure expected as rate cuts gradually filter through the system.

Earnings Season Highlights:

• $WESTPAC BANKING CORPORATION(WBC.AU)$ and $NATIONAL AUSTRALIA BANK LTD(NAB.AU)$ are expected to lead in top-line growth, supported by a favorable lending mix and disciplined deposit management.

• $Macquarie(MQG.AU)$ is poised to deliver another strong half-year, benefitting from active markets and solid client trading volumes.

• $BENDIGO AND ADELAIDE BANK(BEN.AU)$ is expected to show steady growth, though from a smaller base compared to the majors.

The Australian banking sector enters the earnings season with a healthy revenue environment, bringing optimism to the market, but there are significant challenges ahead, particularly with lower rates and increasing market competition.

Today’s Topic:

Which Australian bank's earnings report are you most excited to see this season? With Westpac, NAB, and Macquarie expected to post strong results, do you think the Australian banking sector can continue its strong growth, or will challenges in FY26 start to take their toll? Share your thoughts in the comments below.

Disclaimer:

This material is for informational purposes only and does not constitute investment advice. All investments carry risk, including the possible loss of principal. Please conduct your own research and consult a licensed financial advisor before making any investment decisions.