The financial results reported by Westpac Banking (ASX:WBC, NZE:WBC), National Australia Bank (ASX:NAB), and ANZ Group Holdings (ASX:ANZ, NZE:ANZ) for the fiscal half year ended March 31 were in line with or exceeded expectations, showing resilience and supporting their ratings, Fitch Ratings said Wednesday.

Commonwealth Bank of Australia (ASX:CBA) reported less detailed results for the third quarter, which were also in line with the ratings firm's expectations.

The lenders' net interest margins are likely to contract further in 2025 and 2026, as interest rates come down and competition weighs on the banks. Their sound interest rate risk management should lead to the impact being limited.

Headwinds are expected to continue for the banks in 2025, the credit ratings agency said. However, the strength of the major banks' franchises and the results of earlier investments in digitization will likely lead to earnings being broadly stable for them. Cost management is expected to remain a focus to offset revenue pressure.

The pace of increase in the stage 3 loans-to-gross-loans ratio slowed for most banks, and the stage 3 ratio is anticipated to peak in 2025, according to Fitch.

The banks' funding metrics were broadly stable, while liquidity levels remained strong. Their common equity tier 1 ratios remain comfortably above target ranges and the minimum regulatory requirement of 10.25%, including buffers.