Citi analysts believe that while bank stocks have held up amid tariff-driven volatility, a global slowdown could shift investor focus to major lenders.
Initially, portfolios were adjusted to limit exposure to directly affected sectors, but second-order impacts such as weaker global and domestic growth may now emerge. This could lead to slower credit growth and pressure on net interest margins if the Reserve Bank of Australia cuts rates.
Citi's analysts believe Bank of Queensland’s upcoming results may serve as a key indicator.