Fitch: Improvement in economic prospects reduces headwinds for Australian, NZ banks

The US-based Fitch Ratings is out with its latest assessment of the Australian and New Zealand’s banking sector, with the key highlights found below.

“Improvement in economic prospects has reduced headwinds affecting Australia and New Zealand's bank operating environments.”

“Improving economic conditions should assist earnings through significantly lower impairment charges.”

“Believe Australia & NZ banks will gradually release provisions set aside in 2020 if two economies perform in line with expectations in 2021.”

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