CBA back to $45-50 again soon?, page-551

However, analysts pointed to rising competition around deposits, which is seeing more customers shifting to term deposits. These pay savers more than transaction accounts, costing banks more.Deposit pricing has come under political scrutiny in the form of an ACCC pricing inquiry, as banks delay passing rate rises through to savers to boost profits. Federal Treasurer Jim Chalmers asked the competition regulator on Wednesday morning – at the same time CBA’s results lobbed – to investigate the banks’ timing passing higher rates to savers. It will also examine the way they treat new versus existing customers when it comes to interest on their deposits.Several analyst spot reports highlighted the “exit NIM” is falling, with one chart showing a peak in October and a lower NIM in November and December.“Concerns around peak NIMs will be increased following this result, as we note that deposit switching accelerated in the half,” said Citi analyst Brendan Sproules.Barrenjoey analyst Jon Mott said he expected CBA shares to trade lower on Wednesday as a result of the apparent NIM pressure, coming from intense home loan and deposit price competition, leading to higher funding costs.“This clearly highlights more headwinds than tailwinds,” he said.