0113 GMT - History suggests that competition between Australian banks could be about to intensify, Morgan Stanley analysts say. They tell clients in a note that long periods of stable competition are unusual, leading them to forecast increased competition and compressed margins in 1H FY 2027. The analysts point out that Judo Capital's downgraded guidance has raised concerns about credit quality in small- and medium-sized business lending, while housing-market sentiment has deteriorated due to higher borrowing costs and tax policy changes. They think that conversion rates on mortgage applications are likely to fall, adding that weaker mortgage growth usually drives more competition. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 28, 2026 21:13 ET (01:13 GMT)

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