Source: News AZI —
Macquarie analyst Victor German last week said deposit pricing was giving banks a “sugar hit,” at the same time as loan growth in their mortgage businesses slowed.
“In the short term, banks continue to benefit from highly lucrative retail deposit pricing, which will likely provide margin upside in the next six months,” German said in a note.
The gradual increase in deposit rates comes after the big four were flooded with savings during the pandemic, which limited the competition to attract funds from households.
The banks on Monday highlighted the various influences on deposit rates, and pointing to some of their offers.
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