The impressive profitability of Australia’s banks was drowned out in 2017 by political and legal melodrama involving accusations of customer mistreatment and defective cultures. It’s a dynamic set to continue in 2018 with the banking royal commission. “Heading into 2018, the noise is going to continue,” says Dion Hershan, managing director and head of Australian equities at Yarra Capital Management. “The royal commission will dial up the temperature on many issues, and will be a great distraction. But our sense is it will not have a profound effect on the fundamentals of the sector over the longer term.” Read more…. (subscription to The Australian Financial Review required)