Mortgage and other loan re-pricing will add about seven basis points to margins in the September half, according to Deutsche Bank analyst James Freeman.
A Deutsche review of the sector, published last week, includes a forecast for a much stronger September half for the major banks.
Margins were down in the March half and earnings were flat, apart from strong trading and markets results. Margins were hit by higher retail deposit funding costs.
Deutsche said: "We believe the banking sector is poised to enjoy strong growth in the second half of the year, driven by the...
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