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Australian (ASX) Banks Industry Analysis
UpdatedMay 11, 2025
DataAggregated Company Financials
Companies14
- 7D-2.6%
- 3M-3.6%
- 1Y22.2%
- YTD2.9%
Over the last 7 days, the Banks industry has dropped 2.6%, driven by Westpac Banking declining 6.7%. This takes the industry's 12 month performance to a gain of 22%. Looking forward, earnings are forecast to grow by 2.8% annually.
Industry Valuation and Performance
Has the Australian Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 11 May 2025 | AU$601.3b | AU$94.6b | AU$31.8b | 13.8x | 18.9x | 6.4x |
| Tue, 08 Apr 2025 | AU$534.8b | AU$93.3b | AU$31.7b | 11.7x | 16.9x | 5.7x |
| Thu, 06 Mar 2025 | AU$578.8b | AU$93.3b | AU$31.7b | 12.7x | 18.3x | 6.2x |
| Sat, 01 Feb 2025 | AU$617.2b | AU$92.5b | AU$31.4b | 14.2x | 19.6x | 6.7x |
| Mon, 30 Dec 2024 | AU$592.5b | AU$92.5b | AU$31.4b | 13.7x | 18.8x | 6.4x |
| Wed, 27 Nov 2024 | AU$602.7b | AU$92.5b | AU$31.4b | 13.7x | 19.2x | 6.5x |
| Fri, 25 Oct 2024 | AU$581.3b | AU$91.8b | AU$31.6b | 12.8x | 18.4x | 6.3x |
| Sun, 22 Sep 2024 | AU$591.1b | AU$91.8b | AU$31.5b | 12.7x | 18.7x | 6.4x |
| Tue, 20 Aug 2024 | AU$558.0b | AU$91.7b | AU$31.3b | 12.6x | 17.8x | 6.1x |
| Thu, 18 Jul 2024 | AU$544.7b | AU$91.7b | AU$31.6b | 11.4x | 17.2x | 5.9x |
| Sat, 15 Jun 2024 | AU$512.7b | AU$91.6b | AU$31.8b | 10.4x | 16.1x | 5.6x |
| Mon, 13 May 2024 | AU$495.8b | AU$91.7b | AU$31.8b | 10.7x | 15.6x | 5.4x |
| Wed, 10 Apr 2024 | AU$501.1b | AU$92.5b | AU$32.7b | 11.1x | 15.3x | 5.4x |
| Fri, 08 Mar 2024 | AU$502.4b | AU$92.5b | AU$32.7b | 10.8x | 15.4x | 5.4x |
| Sun, 04 Feb 2024 | AU$474.3b | AU$92.8b | AU$33.2b | 8.3x | 14.3x | 5.1x |
| Tue, 02 Jan 2024 | AU$454.6b | AU$92.8b | AU$33.2b | 8.1x | 13.7x | 4.9x |
| Thu, 30 Nov 2023 | AU$420.0b | AU$92.8b | AU$33.2b | 7.9x | 12.7x | 4.5x |
| Sat, 28 Oct 2023 | AU$411.9b | AU$91.0b | AU$32.5b | 7.8x | 12.7x | 4.5x |
| Mon, 25 Sep 2023 | AU$420.1b | AU$91.0b | AU$32.6b | 8.1x | 12.9x | 4.6x |
| Wed, 23 Aug 2023 | AU$411.4b | AU$91.0b | AU$32.6b | 8.4x | 12.6x | 4.5x |
| Fri, 21 Jul 2023 | AU$431.1b | AU$91.0b | AU$32.4b | 8.3x | 13.3x | 4.7x |
| Sun, 18 Jun 2023 | AU$403.6b | AU$91.0b | AU$32.4b | 8.2x | 12.5x | 4.4x |
| Tue, 16 May 2023 | AU$406.4b | AU$91.0b | AU$32.4b | 8.1x | 12.5x | 4.5x |
| Thu, 13 Apr 2023 | AU$417.2b | AU$89.2b | AU$31.5b | 9.7x | 13.2x | 4.7x |
| Sat, 11 Mar 2023 | AU$413.3b | AU$88.9b | AU$31.4b | 8.6x | 13.2x | 4.6x |
| Mon, 06 Feb 2023 | AU$463.2b | AU$87.6b | AU$30.9b | 10.9x | 15x | 5.3x |
| Wed, 04 Jan 2023 | AU$434.9b | AU$87.6b | AU$30.9b | 10.2x | 14.1x | 5x |
| Fri, 02 Dec 2022 | AU$454.7b | AU$87.6b | AU$30.9b | 11.1x | 14.7x | 5.2x |
| Sun, 30 Oct 2022 | AU$448.3b | AU$88.4b | AU$30.3b | 11.1x | 14.8x | 5.1x |
| Tue, 27 Sep 2022 | AU$406.6b | AU$87.7b | AU$29.9b | 11.1x | 13.6x | 4.6x |
| Thu, 25 Aug 2022 | AU$416.2b | AU$87.6b | AU$30.0b | 11.8x | 13.9x | 4.8x |
| Sat, 23 Jul 2022 | AU$410.8b | AU$87.2b | AU$30.2b | 12.5x | 13.6x | 4.7x |
| Mon, 20 Jun 2022 | AU$327.9b | AU$87.2b | AU$30.2b | 10.4x | 10.9x | 3.8x |
| Wed, 18 May 2022 | AU$448.5b | AU$87.2b | AU$30.2b | 12.6x | 14.9x | 5.1x |
Price to Earnings Ratio
14.9x
Current Industry PE
- Investors are optimistic on the Australian Banks industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 18.9x which is higher than its 3-year average PE of 15.1x.
- The 3-year average PS ratio of 5.3x is lower than the industry's current PS ratio of 6.4x.
Past Earnings Growth
- The earnings for companies in the Banks industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 2.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Financials industry?
| AU Market | 0.058% | |
| Financials | -0.95% | |
| Banks | -2.57% | |
| Regional Banks | 1.77% | |
| Diversified Banks | -2.65% | |
Industry PE
- Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 15.2x.
- Analysts are expecting annual earnings growth of 2.7%, which is higher than its past year's earnings decline of 1.1% per year.
- Investors are most pessimistic about the Regional Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.8x.
Forecasted Growth
- Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 6.9% over the next 5 years.
- This is better than its past earnings decline of 7.8% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 2.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| BEN Bendigo and Adelaide Bank | AU$11.72 | 2.4% +AU$158.5m | 18.0% | PB0.9x | |
| NAB National Australia Bank | AU$36.53 | 0.1% +AU$153.3m | 8.0% | PB1.8x | |
| BOQ Bank of Queensland | AU$7.56 | 0.9% +AU$46.0m | 27.7% | PB0.8x | |
| BFL BSP Financial Group | AU$7.64 | 0.5% +AU$18.7m | 21.3% | PB2x | |
| MYS MyState | AU$3.98 | 1.3% +AU$8.5m | 13.1% | PB1.4x |