Australia’s Big Four Banks maintain stable credit performance through uncertainty

Not only did the first half of 2025 see the Majors reporting an increase in combined profits, average provisions for credit loss and capital and liquidity ratios remain strong, weathering the economic uncertainties of inflation and interest rates.

Despite concerns over the resilience of mortgagors and businesses to higher inflation and elevated interest rates, Australia’s big four major banks (the Majors) have continued to show stable credit performance. According to KPMG Australia's latest Big four major banks Australia: Half year 2025 results analysis, the Majors' expected 1H25 credit loss (ECL) provisions – the funds set aside to cover potential future losses on loans – increased 2.8 percent and 1.3 percent compar...

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