0250 GMT - Macquarie analysts see risk that increased provisioning in response to the Iran conflict offsets Australian banks' improved margins. They raise their margin forecasts across the sector in response to market expectations of two more interest-rate rises by the Reserve Bank of Australia. The positive impact is crimped by lower credit growth, but they nonetheless raise their FY 2027 earnings forecasts for the major banks by between 3% and 4%. However, they warn clients in a note that any deterioration in credit quality will be punished more severely and continue to see downside risk for the sector. National Australia Bank remains Macquarie's preferred exposure, supported by a share-price pullback and potential earnings upside. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

April 14, 2026 22:50 ET (02:50 GMT)

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