Major bank margins look to have peaked as deposit competition bites
Net interest margins flattened across the latest results, with the tailwind from higher rates now largely spent.
Priya Nair
Banking & Credit Correspondent · Friday 29 May 2026 · 5 min read
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The major banks' net interest margins were broadly flat in the latest half, suggesting the boost from rising rates has run its course.
Intense deposit competition and the rollover of cheap pandemic-era funding are squeezing the liability side.
Cost discipline and benign loan losses did much of the work in holding cash earnings steady.
Investors are now focused on capital returns, with several lenders extending buybacks.
Priya Nair
Banking & Credit Correspondent · Former prudential analyst
Priya tracks APRA, the major banks, lending standards and credit markets.