Banks - Australia: Reporting season preview: A tougher outlook for Retail banks

Research evidence excerpt

Banks - Australia: Reporting season preview: A tougher outlook for Retail banks

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Banks - Australia

Reporting season preview: A tougher

outlook for Retail banks

Industry Overview

Key takeaways 01 July 2026

Equity• Banks Aug reporting to highlight resilient earnings; tough outlook for Retail banks

Australia

• NAB upgraded to Buy with resilience on revenues, bad debts Banks-Multinational/Universal

• ANZ's credit quality at 3Q26 update a source of EPS upside

Matt Dunger >>

Research Analyst

NIMs higher and bad debts stable. Outlook gets tougher Merrill+61 2 9226Lynch5329(Australia)

matthew.dunger@bofa.com

We expect the August reporting season to highlight NIM improvement from higher

interest rates and stable bad debts. Our estimates are ahead of consensus at ANZ/ WBC AidaResearchPitaAnalyst>>

on resilient revenues and stable bad debts. We see potential for NAB to outperform on Merrill Lynch (Australia)

+61 2 9226-5066

revenue and credit quality relative to expectations and have upgraded to Buy. CBA’s aida.pita@bofa.com

weaker capital position could cause a negative surprise on DRP neutralisation. The

outlook for mortgage revenue and EPS growth could challenge retail bank valuations.

Related Research

Exhibit 1: August 2026 reporting season expectations

Bank reporting season key financial summary Natl Aust Bank: Upgrade to Buy: Business

leadership 01 July 2026 Date Event Cash Earnings Basic Cash EPS DPS

WBC 10-Aug-2026 3Q26 trading update $1.87bn n.a. n.a. Banks - Australia: Bank Balance Tracker:

CBA 12-Aug-2026 FY26 Result $10.88bn $6.50 $5.05

Credit growth holds, deposit growth stalls ANZ 13-Aug-2026 3Q26 trading update $2.01bn n.a. n.a.

NAB 17-Aug-2026 3Q26 trading update $1.89bn n.a. n.a. 30 June 2026

BEN 24-Aug-2026 FY26 Result $271m $0.47 $0.33