Australia’s top banks, Commonwealth Bank of Australia, National Australia Bank, Westpac, and ANZ Group, may post weaker profit margins in the June quarter due to rising expenses and unemployment.

The Reserve Bank of Australia has left rates constant at 4.1%, and analysts are monitoring for rising bad debt rates.

Mortgage competition has reduced profitability risk for banks, and Morgan Stanley predicts a mid-single-digit margin decline in the June quarter.

CBA’s full-year results are expected to show an 18% increase in net interest income and a 5.5% increase in cash profit.

Most banks may maintain buy-backs and lift dividends, as they are healthy on capital ratios.