2211 GMT - Australian banks' recent market updates indicate the lenders need lower inflation and interest rates to support earnings, Citi says. Its analysts tell clients that Australian banks are unlikely to enjoy the same benefits as U.S. counterparts from the incoming Trump administration. The latest advance by shares of the country's four largest banks over the past two weeks only stretches valuation further, they say. Stubbornly high costs, pressure on revenue growth and deteriorating asset quality are all seen as headwinds at Citi. Their order of preference remains Westpac, Commonwealth Bank, NAB and ANZ, but they are sell rated on all four. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 17, 2024 17:11 ET (22:11 GMT)
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