2242 GMT - Macquarie analysts move to an underweight position on Australian banks, citing earnings risks stemming from the Iran conflict. They see the inflationary impact of higher oil prices increasing the likelihood of interest-rate hikes, which would put further pressure on consumers and discretionary spending. This in turn could weigh on lenders' credit growth and contribute to higher rates of arrears, Macquarie says. "While the situation remains highly uncertain and fragile, we expect banks to take provision overlays in upcoming results, with impairment charges likely to rise vis-à-vis our current base case," Macquarie says. It downgrades fiscal 2026 bank earnings forecasts by 1-2%. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

March 22, 2026 18:42 ET (22:42 GMT)

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