Banks expected to take a hit in half-yearly results
The banks’ earnings are under pressure as half-yearly results from three of the big banks are expected to be released in the next week.
Westpac, ANZ and NAB are all expected to publish their results.
Stockbroker Shaw & Partners’ Banking Analyst Brett Le Mesurier tells Ross Greenwood it will be a struggle for banks to pass on any rate cuts.
“If they do pass it on then they would probably have an earnings downgrade, therefore, they probably won’t pass it on.”
He says lending can make an impact on the economy and their earnings.
“If people borrow 10 per cent less, house prices fall roughly 10 per cent.”
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