Margin Drivers Monthly (Jun-26): Funding cost drivers a little negative, watching for deposit competition signals

Research evidence excerpt

Margin Drivers Monthly (Jun-26): Funding cost drivers a little negative, watching for deposit competition signals

J P M O R G A N Asia Pacific Equity Research

01 July 2026

Margin Drivers Monthly (Jun-26)

Funding cost drivers a little negative, watching for

deposit competition signals

In June, funding cost drivers were slightly negative and advertised mortgage Australian Banks

ACspreads stable. In a period of RBA cash rate stability, there were no changes to Andrew Triggs

major bank online saver or behavioral savings product pricing. There was little (61-2) 9003-8919

change to term deposit spreads in short- and long-term tenors. However, WBC andrew.triggs@jpmorgan.com

introduced 8mth TD specials across the Westpac and St George brands which Kelsey Bentley

drove deterioration in average major bank TD spreads for the medium-term tenor. (61-2) 9003 7482

Deposit competition is worth watching given system deposit growth has been kelsey.bentley@jpmorgan.com

J.P. Morgan Securities Australia Limited

running below all-ADI loan growth in recent months. On wholesale funding costs,

while there was little change in major bank CDS spreads, the ~10bps reduction in

3/5yr swap rates in the month would limit the NIM benefit from replicating

portfolios if sustained. The BBSW-OIS spread was little changed and has been

remarkably stable over the last 12 months. There was no change to advertised JPM forecast U/L NIM movements (ex

Markets/Liquidity)mortgage pricing from the majors, however recent feedback from the broker

channel suggests that CBA has become more competitive on price (for large loans 0.06%

to owner occupiers). 0.04%0.02%

• Deposit spreads. In June, major banks saw an immaterial improvement in ST -0.02%0.00%