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Australian (ASX) Financials Sector Analysis

UpdatedApr 12, 2026
DataAggregated Company Financials
Companies132
  • 7D6.3%
  • 3M9.4%
  • 1Y22.3%
  • YTD6.8%

Over the last 7 days, the Financials industry has risen 6.3%, driven by gains from Commonwealth Bank of Australia of 6.1%. This means that the industry has gained 22% over the past year. Looking forward, earnings are forecast to grow by 4.8% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Apr 2026AU$1.0tAU$219.4bAU$48.5b15.9x20.9x4.6x
Tue, 10 Mar 2026AU$954.8bAU$218.2bAU$46.6b16.2x20.5x4.4x
Thu, 05 Feb 2026AU$949.8bAU$220.9bAU$46.4b18.7x20.5x4.3x
Sat, 03 Jan 2026AU$947.9bAU$222.6bAU$46.6b19.1x20.3x4.3x
Mon, 01 Dec 2025AU$914.7bAU$223.4bAU$46.7b19.9x19.6x4.1x
Wed, 29 Oct 2025AU$867.0bAU$200.0bAU$40.8b19.8x21.3x4.3x
Fri, 26 Sep 2025AU$951.7bAU$221.5bAU$48.2b19.6x19.8x4.3x
Sun, 24 Aug 2025AU$988.1bAU$222.5bAU$48.0b18.5x20.6x4.4x
Tue, 22 Jul 2025AU$948.1bAU$220.4bAU$46.6b16.4x20.3x4.3x
Thu, 19 Jun 2025AU$939.1bAU$220.6bAU$46.6b16.2x20.1x4.3x
Sat, 17 May 2025AU$906.2bAU$221.0bAU$46.7b15.5x19.4x4.1x
Mon, 14 Apr 2025AU$825.2bAU$220.4bAU$46.7b13.9x17.7x3.7x
Wed, 12 Mar 2025AU$836.3bAU$220.2bAU$46.7b14.3x17.9x3.8x
Fri, 07 Feb 2025AU$929.2bAU$216.4bAU$44.8b17.5x20.7x4.3x
Sun, 05 Jan 2025AU$887.8bAU$216.2bAU$44.0b18.3x20.2x4.1x
Tue, 03 Dec 2024AU$913.5bAU$214.8bAU$43.9b18x20.8x4.3x
Thu, 31 Oct 2024AU$866.2bAU$212.8bAU$43.8b17.4x19.8x4.1x
Sat, 28 Sep 2024AU$838.4bAU$211.5bAU$43.6b17.3x19.2x4x
Mon, 26 Aug 2024AU$824.8bAU$211.0bAU$43.8b19.8x18.8x3.9x
Wed, 24 Jul 2024AU$813.0bAU$210.4bAU$44.1b18.4x18.4x3.9x
Fri, 21 Jun 2024AU$784.1bAU$210.1bAU$44.2b17.4x17.7x3.7x
Sun, 19 May 2024AU$756.5bAU$210.0bAU$44.2b17.4x17.1x3.6x
Tue, 16 Apr 2024AU$744.3bAU$219.6bAU$46.0b17.7x16.2x3.4x
Thu, 14 Mar 2024AU$763.8bAU$218.8bAU$46.1b17.7x16.6x3.5x
Sat, 10 Feb 2024AU$729.1bAU$198.1bAU$45.7b17.5x16x3.7x
Mon, 08 Jan 2024AU$695.6bAU$198.3bAU$45.5b16.7x15.3x3.5x
Wed, 06 Dec 2023AU$654.6bAU$198.8bAU$45.6b16.8x14.4x3.3x
Fri, 03 Nov 2023AU$639.3bAU$197.5bAU$45.4b16.1x14.1x3.2x
Sun, 01 Oct 2023AU$652.0bAU$197.6bAU$45.5b16.3x14.3x3.3x
Tue, 29 Aug 2023AU$648.2bAU$198.1bAU$46.0b16.2x14.1x3.3x
Thu, 27 Jul 2023AU$670.0bAU$186.6bAU$44.4b19.6x15.1x3.6x
Sat, 24 Jun 2023AU$629.3bAU$186.9bAU$44.6b17x14.1x3.4x
Mon, 22 May 2023AU$628.5bAU$185.1bAU$43.5b17.6x14.4x3.4x
Wed, 19 Apr 2023AU$640.2bAU$181.9bAU$42.3b17.8x15.1x3.5x
Price to Earnings Ratio

15.1x


Total Market Cap: AU$640.2bTotal Earnings: AU$42.3bTotal Revenue: AU$181.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Financials Sector Price to Earnings3Y Average 18x202420252026
Current Industry PE
  • Investors are optimistic on the Australian Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 20.9x which is higher than its 3-year average PE of 18.0x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 4.6x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 4.7% per year over the last three years.
  • Revenues for these companies have grown 6.4% 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 Market4.32%
Financials6.35%
Consumer Finance7.39%
Capital Markets7.00%
Banks6.86%
Diversified Financial3.04%
Insurance2.42%
Mortgage Finance0%0
Mortgage REITs0%0
Industry PE
  • Investors are most optimistic about the Banks industry which is trading above its 3-year average PE ratio of 17.3x.
    • Analysts are expecting annual earnings growth of 4.5%, which is higher than its past year's earnings decline of 1.0% per year.
  • Investors are most pessimistic about the Diversified Financial industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 3.6x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 16% over the next 5 years.
  • However this is lower than its past earnings growth rate of 36% per year.
  • In contrast, the Diversified Financial industry is expected to see its earnings decline by 27% 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$183.386.1%
+AU$17.7b		18.6%PB4x
NAB National Australia BankAU$45.368.5%
+AU$10.9b		36.5%PB2.2x
WBC Westpac BankingAU$42.777.3%
+AU$10.0b		42.4%PB2x
MQG Macquarie GroupAU$225.009.4%
+AU$7.1b		25.7%PE22.7x
ANZ ANZ Group HoldingsAU$38.846.0%
+AU$6.7b		44.1%PB1.6x

Latest News

BEN
AU$11.49
Bendigo and Adelaide Bank
7D
13.5%
1Y
11.7%

BEN: Future Returns Will Reflect Fair Pricing And Execution On Profitability

Analysts have modestly raised their price target for Bendigo and Adelaide Bank to A$10.84 from A$10.65, citing updated assumptions around the discount rate, revenue growth, profit margin and future P/E multiples. Valuation Changes Fair Value: A$10.65 to A$10.84, indicating a small uplift in the assessed valuation per share.
ANZ
AU$38.84
ANZ Group Holdings
7D
6.0%
1Y
44.1%

ANZ: Mixed Broker Views And Payments JV Review Will Shape Forward Balance

Narrative Update on ANZ Group Holdings The analyst price target for ANZ Group Holdings has been adjusted marginally to A$37.07 from A$37.07 as analysts factor in slightly lower revenue growth and profit margin assumptions, along with a modestly reduced discount rate and a small uptick in future P/E, following mixed recent research views including a Neutral stance with an A$38.14 target. Analyst Commentary Recent research on ANZ Group Holdings shows a mix of optimism and caution, with some analysts adjusting ratings and targets as they reassess the balance between growth prospects, revenue headwinds and current valuation.
IAG
AU$7.21
Insurance Australia Group
7D
-1.0%
1Y
-5.5%

IAG: Share Buyback And Margin Resilience Will Support Future Upside Potential

Analysts have slightly reduced their price target for Insurance Australia Group to A$8.05, reflecting updated views of somewhat weaker revenue growth and a modestly higher profit margin outlook. Together, these factors also contribute to a marginally lower forward P/E assumption.
MQG
AU$225.00
Macquarie Group
7D
9.4%
1Y
25.7%

MQG: Neutral Upgrade And Deal Pipeline Will Support Future Repricing Potential

Narrative Update on Macquarie Group Analysts have lifted Macquarie Group's price target to A$280.73, with the change linked to valuation support and what they describe as an improving outlook for the bank. Analyst Commentary Recent research updates on Macquarie Group highlight a shift in tone, with at least one major firm upgrading the stock and setting a price target of A$280.73.
CGF
AU$8.07
Challenger
7D
-2.3%
1Y
29.3%

CGF: Capital Returns And Cost Discipline Will Support Future Repricing Potential

Analysts have nudged their price target for Challenger slightly higher to A$9.50 from A$9.44, reflecting updated assumptions for fair value, discount rate and future P/E that are broadly consistent with recent adjustments seen across alternative asset managers. Analyst Commentary The recent tweak to Challenger's A$9.50 price target fits into a broader pattern that research desks have been applying across global alternative asset managers, including the Carlyle updates referenced here.
HMC
AU$2.32
HMC Capital
7D
-7.9%
1Y
-49.9%
MFG
AU$9.45
Magellan Financial Group
7D
-0.8%
1Y
30.5%
QBE
AU$22.46
QBE Insurance Group
7D
4.2%
1Y
9.8%

QBE: Dividend And Governance Changes Will Shape A Balanced Return Outlook

Analysts have nudged their price target on QBE Insurance Group slightly higher to around A$23.25 from about A$23.09, reflecting updated views that pair a lower assumed revenue growth rate with a modestly stronger profit margin and a broadly similar future P/E outlook. What's in the News Shareholders have requisitioned resolutions for the 2026 Annual General Meeting in Sydney, focused on changes to QBE Insurance Group's constitution regarding how shareholder resolutions can express opinions, request information, or make advisory requests to the board about the exercise of directors’ powers, subject to relevance and legal limits (Key Developments).
CBA
AU$183.38
Commonwealth Bank of Australia
7D
6.1%
1Y
18.6%

CBA: Elevated P/E And Margin Risks May Restrain Fully Franked Dividend Appeal

Analysts have trimmed their fair value estimate for Commonwealth Bank of Australia by A$1.27 to A$126.17, reflecting slightly lower assumed future P/E multiples, as well as marginally higher revenue growth and profit margin forecasts under a modestly reduced discount rate. Analyst Commentary Recent valuation work on Commonwealth Bank of Australia sits against a backdrop of broadly constructive research across other financials, where several global insurers have seen higher price targets and, in some cases, rating upgrades.
ASX
AU$58.71
ASX
7D
11.3%
1Y
-14.3%

ASX: Neutral Upgrades And Execution Risks Will Shape Future Repricing

Narrative Update The analyst price target for ASX has been adjusted slightly to A$58.18 from A$58.46. Analysts attribute this to steady assumptions for revenue growth, profit margins and future P/E, supported by recent research that highlights resilient activity and pricing trends.
GQG
AU$1.78
GQG Partners
7D
-0.3%
1Y
-12.3%

GQG: Dividend Policy And Stabilizing Flows Will Drive Future Re Rating

Analysts have trimmed their price targets on GQG Partners to A$1.85, reflecting updated fair value, discount rate and P/E assumptions in light of recent fund outflows and performance concerns. Analyst Commentary Recent Street research on GQG Partners highlights a more cautious stance, with the A$1.85 price target framed against accelerating fund outflows and concerns around recent fund performance.
NAB
AU$45.36
National Australia Bank
7D
8.5%
1Y
36.5%

NAB: Future Earnings Multiple Will Reflect Improved Margin And Revenue Assumptions

Analysts now set their fair value estimate for National Australia Bank at A$50.64, up from A$46.31, reflecting updated views on discount rates, revenue growth, profit margins and future P/E assumptions, even as some firms have recently issued downgrades. Analyst Commentary Recent broker moves on National Australia Bank send a mixed message, with some high profile downgrades from firms like JPMorgan and Morgan Stanley sitting alongside a higher fair value estimate of A$50.64.
GOW
AU$2.12
Gowing Bros
7D
-5.4%
1Y
-1.4%
WBC
AU$42.77
Westpac Banking
7D
7.3%
1Y
42.4%

WBC: Refined Discount Rate And P/E Assumptions Will Constrain Future Upside

Analysts have nudged their Westpac Banking price target slightly lower to A$35.27 from A$35.33, citing small refinements to the discount rate, revenue growth, profit margin and future P/E assumptions. Analyst Commentary Bullish Takeaways Bullish analysts view the modest cut to the A$35.27 target as a technical clean up after updating discount rate and P/E inputs, rather than a shift in conviction on Westpac Banking's core franchise.
LFG
AU$3.44
Liberty Financial Group
7D
-4.4%
1Y
8.2%
HUM
AU$0.63
Humm Group
7D
-2.3%
1Y
14.7%