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Australian (ASX) Financials Sector Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies129
  • 7D1.1%
  • 3M9.6%
  • 1Y13.8%
  • YTD6.5%

In the last week, the Financials industry is up 1.1%, with Westpac Banking leading the way with a 2.0% gain. During this same period, the Macquarie Group underperformed, falling 6.0%. This takes the industry's 12 month performance to a gain of 14%. Earnings are forecast to grow by 5.5% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 26 Feb 2026AU$1.0tAU$217.2bAU$46.3b16.6x21.8x4.7x
Sat, 24 Jan 2026AU$927.8bAU$221.7bAU$46.5b19.1x19.9x4.2x
Mon, 22 Dec 2025AU$936.2bAU$223.1bAU$46.7b19.1x20.1x4.2x
Wed, 19 Nov 2025AU$918.6bAU$223.7bAU$46.8b19.1x19.6x4.1x
Fri, 17 Oct 2025AU$989.8bAU$222.0bAU$47.9b19.6x20.7x4.5x
Sun, 14 Sep 2025AU$976.4bAU$221.3bAU$48.1b19.4x20.3x4.4x
Tue, 12 Aug 2025AU$952.0bAU$221.0bAU$46.9b16.5x20.3x4.3x
Thu, 10 Jul 2025AU$953.1bAU$220.4bAU$46.6b16.2x20.4x4.3x
Sat, 07 Jun 2025AU$942.4bAU$220.5bAU$46.6b15.9x20.2x4.3x
Mon, 05 May 2025AU$902.9bAU$208.9bAU$43.1b15.1x20.9x4.3x
Wed, 02 Apr 2025AU$853.3bAU$220.6bAU$46.7b13.9x18.3x3.9x
Fri, 28 Feb 2025AU$885.7bAU$219.5bAU$46.6b15.9x19x4x
Sun, 26 Jan 2025AU$916.2bAU$215.7bAU$44.0b17.8x20.8x4.2x
Tue, 24 Dec 2024AU$882.2bAU$216.2bAU$44.0b18.1x20.1x4.1x
Thu, 21 Nov 2024AU$909.1bAU$214.2bAU$43.8b18x20.7x4.2x
Sat, 19 Oct 2024AU$873.5bAU$212.1bAU$43.7b17.6x20x4.1x
Mon, 16 Sep 2024AU$853.9bAU$212.4bAU$43.7b16.8x19.5x4x
Wed, 14 Aug 2024AU$803.4bAU$211.4bAU$44.8b18.4x17.9x3.8x
Fri, 12 Jul 2024AU$796.4bAU$209.7bAU$44.0b18.4x18.1x3.8x
Sun, 09 Jun 2024AU$777.7bAU$210.6bAU$44.2b17.3x17.6x3.7x
Tue, 07 May 2024AU$749.6bAU$210.7bAU$44.9b18.1x16.7x3.6x
Thu, 04 Apr 2024AU$754.7bAU$219.4bAU$46.0b17.6x16.4x3.4x
Sat, 02 Mar 2024AU$750.7bAU$219.7bAU$46.0b17.8x16.3x3.4x
Mon, 29 Jan 2024AU$716.1bAU$198.9bAU$45.7b17.2x15.7x3.6x
Wed, 27 Dec 2023AU$687.3bAU$197.9bAU$45.5b16.7x15.1x3.5x
Fri, 24 Nov 2023AU$646.8bAU$198.8bAU$45.6b16.7x14.2x3.3x
Sun, 22 Oct 2023AU$639.9bAU$198.0bAU$45.5b16.3x14.1x3.2x
Tue, 19 Sep 2023AU$663.9bAU$198.3bAU$45.9b16.5x14.5x3.3x
Thu, 17 Aug 2023AU$652.7bAU$195.1bAU$45.7b17.2x14.3x3.3x
Sat, 15 Jul 2023AU$650.1bAU$186.2bAU$44.5b17.5x14.6x3.5x
Mon, 12 Jun 2023AU$618.3bAU$186.8bAU$44.6b17x13.9x3.3x
Wed, 10 May 2023AU$630.2bAU$184.7bAU$43.4b17.8x14.5x3.4x
Fri, 07 Apr 2023AU$629.3bAU$182.1bAU$42.3b17.3x14.9x3.5x
Sun, 05 Mar 2023AU$638.9bAU$181.1bAU$42.7b16.9x15x3.5x
Price to Earnings Ratio

15x


Total Market Cap: AU$638.9bTotal Earnings: AU$42.7bTotal Revenue: AU$181.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Financials Sector Price to Earnings3Y Average 17.7x202420252026
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 21.8x which is higher than its 3-year average PE of 17.7x.
  • The 3-year average PS ratio of 3.8x is lower than the industry's current PS ratio of 4.7x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 2.8% per year over the last three years.
  • Revenues for these companies have grown 6.2% 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 Market1.42%
Financials1.10%
Banks2.44%
Insurance0.50%
Mortgage Finance0%0
Mortgage REITs0%0
Diversified Financial-1.99%
Capital Markets-3.10%
Consumer Finance-18.96%
Industry PE
  • Investors are most optimistic about the Banks industry which is trading above its 3-year average PE ratio of 17.0x.
    • Analysts are expecting annual earnings growth of 4.5%, which is higher than its past year's earnings growth of 0.9% per year.
  • Investors are most pessimistic about the Consumer Finance industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
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 growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
WBC Westpac BankingAU$42.722.0%
+AU$2.8b		35.1%PB2x
QBE QBE Insurance GroupAU$21.678.0%
+AU$2.4b		-0.2%PE10.9x
NAB National Australia BankAU$49.041.6%
+AU$2.3b		38.3%PB2.4x
GQG GQG PartnersAU$1.794.1%
+AU$207.1m		-23.1%PE8.2x
MFF MFF Capital InvestmentsAU$4.924.2%
+AU$117.8m		13.4%PE11.1x

Latest News

AEF
AU$5.14
Australian Ethical Investment
7D
15.5%
1Y
-17.1%
HLI
AU$6.07
Helia Group
7D
6.1%
1Y
1.7%
QBE
AU$21.67
QBE Insurance Group
7D
8.0%
1Y
-0.2%
NAB
AU$49.04
National Australia Bank
7D
1.6%
1Y
38.3%
BEN
AU$10.93
Bendigo and Adelaide Bank
7D
-4.5%
1Y
2.5%

BEN: Future Returns Will Reflect Share Pullback Entry And Execution Delivery Risks

The analyst price target for Bendigo and Adelaide Bank has edged higher to A$10.71 from A$10.52, with analysts citing the recent share price selloff as creating a more attractive entry point and updating their assumptions for revenue growth, profit margins and future P/E. Analyst Commentary Bullish Takeaways Bullish analysts point to the recent share price selloff as creating what they see as a more appealing entry level compared with their updated A$11.32 price target.
NGI
AU$2.53
Navigator Global Investments
7D
-18.1%
1Y
26.5%
PPT
AU$18.58
Perpetual
7D
5.3%
1Y
-12.3%

PPT: Stable Assumptions And Lower Discount Rate Will Support Upside

Analysts have modestly revised their price target for Perpetual to A$20.57, reflecting slightly updated assumptions on discount rate, long term revenue growth, profit margin and future P/E multiples, while keeping overall fair value broadly unchanged. Valuation Changes Fair Value: A$20.57 is unchanged, indicating no shift in the overall assessed valuation.
SUN
AU$14.75
Suncorp Group
7D
-3.3%
1Y
-27.4%
MQG
AU$209.55
Macquarie Group
7D
-6.0%
1Y
-9.2%

MQG: Neutral Stance Will Reflect Balanced Outlook And Execution Risk Profile

Analysts have nudged their fair value estimate for Macquarie Group higher to A$231.30 from A$227.34, reflecting updated assumptions for revenue growth, margins and future P/E after a recent upgrade to Neutral with a A$280.73 price target. Analyst Commentary Recent Street research on Macquarie Group has shifted tone, with at least one major firm moving to a Neutral stance and updating its valuation framework.
MPL
AU$4.38
Medibank Private
7D
-3.1%
1Y
-0.9%
CBA
AU$177.27
Commonwealth Bank of Australia
7D
-0.5%
1Y
13.4%

CBA: Higher P/E Assumptions May Strain Returns If Margins Weaken

Analysts have lifted their fair value estimate for Commonwealth Bank of Australia to A$127.23 from A$120.47, reflecting refreshed assumptions for slightly higher revenue growth, a modestly higher future P/E multiple, and a small adjustment to the discount rate and profit margin. Analyst Commentary Analysts updating their fair value work on Commonwealth Bank of Australia are broadly weighing what they see as supportive revenue trends against more mixed sector signals on pricing, margins, and the sustainability of current conditions.
ASX
AU$52.73
ASX
7D
-4.0%
1Y
-21.6%

ASX: Neutral Upgrades And Revenue Trends Will Shape Balanced Future Returns

Analysts have modestly lifted their ASX price target to about A$59. This change reflects updated assumptions around slightly lower revenue growth and profit margins, a marginally higher discount rate, and a small adjustment to future P/E expectations.
IAG
AU$6.62
Insurance Australia Group
7D
-4.9%
1Y
-16.3%

IAG: Share Buyback And Margin Outlook Will Support Undervalued Upside

Analysts have trimmed their price target on Insurance Australia Group to around A$8.23 from about A$8.64, reflecting updated assumptions that factor in softer revenue expectations, slightly firmer profit margins and a lower future P/E of roughly 19.9x. What's in the News The board has approved a share buyback plan, providing authorization for Insurance Australia Group to repurchase its own shares as of February 12, 2026 (company announcement).
GQG
AU$1.79
GQG Partners
7D
4.1%
1Y
-23.1%

GQG: Higher Margins And Dividend Yield Will Offset Flow Headwinds

Analysts have reduced their price target on GQG Partners to A$1.85, citing accelerating fund outflows and weaker fund performance as key reasons for the lower fair value and P/E assumptions in updated models. Analyst Commentary Goldman Sachs has shifted to a Neutral stance on GQG Partners with a A$1.85 price target, pointing to faster fund outflows and weaker fund performance as key drivers of its revised assumptions.
MFF
AU$4.92
MFF Capital Investments
7D
4.2%
1Y
13.4%
WBC
AU$42.72
Westpac Banking
7D
2.0%
1Y
35.1%

WBC: Higher P/E Assumptions Will Limit Future Share Price Upside

Analysts have raised their price target for Westpac Banking to A$35.31 from A$33.86, reflecting updated assumptions around revenue growth, profit margin and future P/E. What's in the News Shareholders approved an amendment to Westpac Banking Corporation's constitution at the annual general meeting held on December 11, 2025 (Key Developments).