Around half of fixed rate borrowers whose low-rate home loans are expiring over the next two years are planning to leave their current lender, but it's those customers who can't that might prove a bigger problem for the banks, new research finds.
Big banks reported combined cash earnings of $17.1 billion in their first halves, up 19 per cent, but they have just gone over the peak of their profitability.
Both ANZ and NAB reported healthy interim cash profits but the core business of lending and borrowing isn’t as profitable as it used to be, particularly in a rising rates environment when banks would usually rake in super profits.
The scramble for customers in the $1.4 trillion household deposit markets comes after Jim Chalmers directed regulators to investigate competition in the sector.