Aug 9, 2026 – 12.06pmThe strong financial updates to be presented by Australia’s banks this week will mask risks that will increase as the outlook for the big lenders – which ruled off their books at the end of June before the full brunt of the property downturn hit balance sheets – weakens over the rest of the year.Westpac is tipped to report a cash profit of about $1.9 billion for the three months to July before the ASX opens on Monday. Bank stocks outperformed the broader market last month, despite pressure on mortgage growth, as higher interest rates offset the impact of more intense competition.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Banks prepare for earning peaks amid rising economic strain
This week marks a final bright spot for the country’s biggest lenders as slowing credit growth, margin pressure and bad debts emerge amid a softening housing market.
TL;DRAI
Westpac reports A$1.9B profit, but Australian banks face mounting risks as property downturn masks credit deterioration. Higher rates boosted margins, yet fintech and payment providers exposed to Australian mortgages will face compression as strain accelerates.
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