ANZ

For the past year, the banks have delivered to shareholders with income and capital gain. In the run-up to their next results, it might be time to consider taking some scrip off the table and pocketing a tidy profit.

With deteriorating economic conditions dampening the banking outlook, some trading momentum may be leaving the sector after a strong two-month run. Six in 10 trades of big-four banks on the Selfwealth platform in July were sell orders, and headwinds are only picking up from here.

The regulator said it wasn’t satisfied the deal would not substantially lessen competition in Australian banking, particularly in home loans and small-business banking. ANZ and Suncorp plan to challenge the decision.

Fronting a House economics committee inquiry into competition in the banking industry, the heads of CBA, ANZ, Westpac and NAB insisted they weren’t unfairly setting interest rates and that competition and customer engagement in the sector have never been stronger.

Analysts expect the bullish momentum for the safe-haven asset to continue amid sinking investor appetite for risk, with prices buoyed by an expected peak in US interest rates and a weakening US dollar.

Higher net interest margins helped drive a nearly 17 per cent increase in the banks’ combined cash profits from a year ago. But a 400 per cent increase in their interest expenses and stiffer lending competition are contributing to a weaker outlook going forward, analysts say.

Nearly 32,000 customers of Australia’s four major banks fell victim to scams in the 2022 financial year, bearing 96 per cent of the losses as reimbursement and compensation rates remain extremely low. ASIC is now pushing financial institutions to improve their approaches to scams and better support their customers.

As part of the RBA’s program exploring a potential Australian central bank digital currency, ANZ has successfully completed a tokenised carbon credit trade using a stablecoin backed by a pilot CBDC, with more use cases set to be tested soon.

The four majors along with AMP and Macquarie have paid or offered to pay a total of $4.7 million for charging fees for advice services they did not provide and for noncompliant advice, bringing to a close an eight-year review by ASIC and a key chapter of the advice industry shakeup led by the Hayne commission.

Analysts agree Australia’s big four banks are entering 2023 from a position of strength as they pass on rising interest rates to borrowers. However, headwinds remain, and the total return picture for shareholders looks more complex.