Mid-Year Prospects: Diversified Financials

Research evidence excerpt

Mid-Year Prospects: Diversified Financials

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

29 July 2026

Mid-Year Prospects

Diversified Financials

This note is part of the J.P. Morgan Australia Mid-Year Prospects series as we take Australia

stock at the mid-point of 2026 and set out our Top Picks and Least Preferred stocks

Insurance and Diversified Financials

for the remainder of the year.

Siddharth Parameswaran AC

(61-2) 9003-8629

siddharth.x.parameswaran@jpmorgan.com

Top Pick – ASX (ASX AU, OW) J.P. Morgan Securities Australia Limited

Very strong revenue growth overall: Cash market turnover stayed materially Tharan Jeyathasan

higher through 2H26, with value traded up ~9% hoh and ~25% YoY for FY26. For (61-2) 9003-6098

the derivatives book, total futures are up ~18% YoY YTD and higher-margin tharan.jeyathasan@jpmorgan.com

J.P. Morgan Securities Australia Limited

commodities are up ~45% YoY, partly offset by softer equity options (single stock

Rishi S Parihar

ADV -4% YoY). We believe Listings recognition should remain relatively stable (91-22) 6157-3775

near-term on AASB 15 smoothing and the annual fee base, despite very weak 2H26 rishi.parihar@jpmchase.com

initial raisings (down sharply hoh) and a further decline in listed entities (2,042; J.P. Morgan India Private Limited

-2% YoY). Overall, revenue growth for 2H appears very strong and the outlook

appears favourable.

ASX.AX, ASX AU

Asymmetric risks on expenses - given recent reset: Expense growth guidance Overweight

for FY27 was extraordinarily high: (1) 18–21% total (13–16% ex-D&A) implies Price (28 Jul 26): A$55.26

~28% underlying cost growth once the ~A$35m one-off Inquiry costs rolls off in Price Target (Jun-27): A$58.00

FY26; (2) Capex is now higher for longer, lifted to A$180–200m in FY27 and A