From Deutsche:
Expecting sound UL earnings growth offset by bad debt deterioration
Overall we expect a mixed 1H16 reporting season, with hoh cash NPAT growth of ~1% -4%. Underlying earnings growth is likely to be solid (3-8%), however we forecast BDD/GLA ratios to rise ~4bps on avg (due to single name exposures and resources). Lending growth should be solid across most businesses, however widening Bills/OIS spreads and Institutional lending pressures should partly offset mortgage repricing benefits (leaving net interest margins up 1bp on avg). We expect non-resources asset quality to remain resilient, however investors are likely to focus on any commentary the banks can provide on provisioning for single names.
