Header cover image

Australian (ASX) Financials Sector Analysis

UpdatedNov 28, 2022
DataAggregated Company Financials
Companies145
  • 7D1.7%
  • 3M7.3%
  • 1Y2.5%
  • YTD-2.4%

Over the last 7 days, the Financials industry has risen 1.7%, driven by gains from Commonwealth Bank of Australia of 3.2%. Despite this gain, the industry's performance has been flat over the past year. As for the next few years, earnings are expected to grow by 5.6% per annum.

Sector Valuation and Performance

Has the Australian Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022AU$670.3bAU$178.3bAU$40.3b14.8x16.7x3.8x
Wed, 26 Oct 2022AU$649.7bAU$179.0bAU$39.1b15.6x16.6x3.6x
Fri, 23 Sep 2022AU$620.9bAU$177.8bAU$38.9b16.3x15.9x3.5x
Sun, 21 Aug 2022AU$646.7bAU$177.2bAU$39.7b15x16.3x3.6x
Tue, 19 Jul 2022AU$601.3bAU$180.4bAU$40.8b14.2x14.7x3.3x
Thu, 16 Jun 2022AU$582.6bAU$180.1bAU$40.8b13.9x14.3x3.2x
Sat, 14 May 2022AU$661.0bAU$180.3bAU$40.9b15x16.2x3.7x
Mon, 11 Apr 2022AU$687.9bAU$175.3bAU$39.3b15.2x17.5x3.9x
Wed, 09 Mar 2022AU$622.5bAU$175.6bAU$39.3b14.9x15.8x3.5x
Fri, 04 Feb 2022AU$644.6bAU$172.6bAU$36.3b14.4x17.8x3.7x
Sun, 02 Jan 2022AU$677.1bAU$171.7bAU$36.2b15.6x18.7x3.9x
Tue, 30 Nov 2021AU$648.3bAU$172.1bAU$36.2b16x17.9x3.8x
Thu, 28 Oct 2021AU$712.7bAU$163.7bAU$31.4b17.2x22.7x4.4x
Sat, 25 Sep 2021AU$685.8bAU$163.9bAU$31.2b17.6x22x4.2x
Mon, 23 Aug 2021AU$690.3bAU$163.8bAU$31.5b17x21.9x4.2x
Sat, 10 Jul 2021AU$670.0bAU$163.0bAU$31.1b16x21.5x4.1x
Fri, 02 Apr 2021AU$619.4bAU$157.9bAU$28.2b16.3x22x3.9x
Mon, 04 Jan 2021AU$557.9bAU$150.4bAU$22.3b18.4x25.1x3.7x
Thu, 08 Oct 2020AU$459.8bAU$147.8bAU$21.0b16.9x21.9x3.1x
Wed, 01 Jul 2020AU$482.9bAU$149.4bAU$24.4b18.3x19.8x3.2x
Sat, 04 Apr 2020AU$420.1bAU$158.3bAU$28.8b13.3x14.6x2.7x
Tue, 07 Jan 2020AU$586.7bAU$161.0bAU$32.5b18x18x3.6x
Price to Earnings Ratio

16.6x


Total Market Cap: AU$589.7bTotal Earnings: AU$35.5bTotal Revenue: AU$163.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Financials Sector Price to Earnings3Y Average 19.5x202020212022
Current Industry PE
  • Investors are pessimistic on the Australian Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 16.7x which is lower than its 3-year average PE of 19.5x.
  • The industry is trading close to its 3-year average PS ratio of 3.6x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 4.3% per year over the last three years.
  • Revenues for these companies have grown 3.0% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Australian Financials sector?

AU Market1.17%
Financials1.75%
Banks2.47%
Insurance1.90%
Mortgage REITs1.26%
Diversified Financial0.96%
Capital Markets-0.56%
Consumer Finance-0.75%
Mortgage Finance-2.65%
Industry PE
  • Investors are most optimistic about the Insurance industry even though it's trading below its 3-year average PE ratio of 12kx.
    • Analysts are expecting annual earnings growth of 13.5%, which is higher than its past year's earnings decline of 20.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings growth rate of 1.1% per year.
  • In contrast, the Mortgage Finance industry is expected to see its earnings decline by 2.3% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CBA Commonwealth Bank of AustraliaAU$109.203.2%
+AU$5.6b
15.2%PB2.5x
NAB National Australia BankAU$31.492.7%
+AU$2.6b
13.9%PB1.7x
WBC Westpac BankingAU$23.991.6%
+AU$1.3b
13.8%PB1.2x
ANZ Australia and New Zealand Banking GroupAU$24.821.3%
+AU$987.9m
-8.3%PB1.1x
QBE QBE Insurance GroupAU$13.025.0%
+AU$920.6m
9.2%PE31.8x
Simply Wall St
Simply Wall Street Pty Ltd
17-21 Bellevue Street, Surry Hills, Sydney
Download on the App StoreGet it on Google Play
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

WBC

AU$23.99

Westpac Banking

7D

1.6%

1Y

13.8%

NAB

AU$31.49

National Australia Bank

7D

2.7%

1Y

13.9%

QBE

AU$13.02

QBE Insurance Group

7D

5.0%

1Y

9.2%

PPT

AU$25.15

Perpetual

7D

-6.6%

1Y

-27.0%

BOQ

AU$7.56

Bank of Queensland

7D

4.3%

1Y

-2.5%

ASX

AU$72.44

ASX

7D

-0.5%

1Y

-20.5%

HLI

AU$2.64

Helia Group

7D

-5.4%

1Y

14.8%

IFL

AU$3.33

Insignia Financial

7D

-1.8%

1Y

-8.8%

IAG

AU$4.87

Insurance Australia Group

7D

-0.6%

1Y

10.2%

MQG

AU$177.95

Macquarie Group

7D

-0.8%

1Y

-8.9%

ANZ

AU$24.82

Australia and New Zealand Banking Group

7D

1.3%

1Y

-8.3%

MFG

AU$10.07

Magellan Financial Group

7D

-2.0%

1Y

-68.5%

CBA

AU$109.20

Commonwealth Bank of Australia

7D

3.2%

1Y

15.2%

AMP

AU$1.33

AMP

7D

3.5%

1Y

33.0%