0013 GMT - Australian bank valuation multiples look likely to keep falling, Morgan Stanley analysts warn. They observe that the average multiple across the big four banks of Commonwealth, Westpac, NAB and ANZ fell to 18.5X 12-month forward earnings by the end of May, down from 19.2X a month earlier. They tell clients to expect a further de-rating due to higher interest rates, an economic slowdown and the impact on credit demand from changes to property-related tax concessions. Westpac and NAB look most vulnerable in the near term, they add. Given the challenges, the MS analysts are cautious on banking at an industry level. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 01, 2026 20:13 ET (00:13 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.