Not much exciting about Aussie banks as high costs pressure earnings – Macquarie

Over the past two years, Australian banks have benefited first from a property boom on the back of Covid restrictions and then from interest rate hikes totalling 400 basis points. Macquarie, an investment bank with a small retail banking operation, said banks' cost bases are likely to remain under pressure as more than 70% of their expenses related to personnel. Macquarie added that it expects banks' expenses to grow by around 1% to 7% in fiscal 2023 through to fiscal 2025, with third-biggest lender Westpac Banking Corp seen being impacted more than its peers.