Australia’s big four banks may be at peak profitability but fat margins aren’t over, analysts say

Forecast to post a combined $16.2bn six-month profit, the big four are facing a looming plateau – but analysts expect strong earnings to continue

• Get our morning and afternoon news emails, free app or daily news podcast

Australia’s big four banks, forecast to post a combined $16.2bn six-month cash profit when they release their results over the next week, have motored through a cost of living crisis, increasing margins as they lift lending rates.

The dynamic reflects that the rapid-fire rises in the official cash rate, used by the Reserve Bank to combat high inflation, created a highly profitable period for the country’s biggest lenders to charge borrowers more for loans than what they pay savers.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup