Australian Banks Face Pressure As Mortgage Demand Falls
Australian bank investors are growing cautious as plunging mortgage demand and higher interest rates threaten profit growth. The countrys major lenders face intense competition and lofty valuations compared to global peers.
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Home-loan applications fell by up to 20% across Australia's largest lenders during the August reporting season, pressuring valuations. The downturn in lucrative mortgage lending threatens to stifle growth and intensify borrower competition. The sector makes up about 24% of the benchmark S&P/ASX 200 index.
