Profit growth from Australia’s banking giants has been tipped to slow this year by a global ratings agency.
Fitch Ratings’ annual outlook on the sector has dampened expectations for banks including Commonwealth Bank of Australia
(ASX:CBA), ANZ Banking Group
(ASX:ANZ), Westpac Banking Corporation
(ASX:WBC) and National Australia Bank Limited
(ASX:NAB)
The forecast comes amid predictions for rising bad-debt charges, higher unemployment, a weaker economy and heightened competition in the housing sector.
Fitch has placed a AA- credit rating on the Big Four Banks who reported record combined profits of $28.6 billion last year.
The net profit of Australia’s biggest bank, Commonwealth Bank, rose to a record $8.65 billion in the 2014 financial year.
