Investment bank JP Morgan says Australia’s top four banks could lose more than a combined 500 million dollars if they don’t follow the lead of St George Bank and again raise their standard variable home loan rates.

An analysis by JP Morgan released today shows even after taking into account the big fours’ previous mortgage rate movements above changes in the official cash rate they’d still stand to lose a combined 534 million dollars from their fiscal 2008 profits.

JP Morgan says ANZ would be the hardest hit losing 142 million dollars from its fiscal 2008 earnings.

St George broke from the pack on Friday by raising its rate by another 20 basis points or 60 basis points for the year putting it seven million dollars ahead in fiscal 2008 on JP Morgan’s estimates.

AAP