Employment report today good for lenders. Hard to see bad debts getting out of hand at this rate. Flipside is that funding costs for SVR will remain higher for longer if economy remains resilient.
In terms of the analysts UPBT assumptions, I wonder if this factors in say s 1% reduction in cash rate? I dont think it would? I recall also management incentives are more or less in line with low double digit growth, and that isn't assuming lower funding costs, just underlying growth of SVR. Seems likely to me by FY26 rates will be going lower, that would be several million a year upside on top of mid to high 30s in FY26.
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