Narrative Update • Jun 02
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Australian (ASX) Banks Industry Analysis
UpdatedJun 03, 2026
DataAggregated Company Financials
Companies15
- 7D-2.1%
- 3M-10.8%
- 1Y-1.2%
- YTD-5.0%
Over the last 7 days, the Banks industry has dropped 2.1%, driven by ANZ Group Holdings declining 2.6%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 5.7% per annum.
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 |
|---|---|---|---|---|---|---|
| Thu, 04 Jun 2026 | AU$626.4b | AU$98.3b | AU$30.0b | 15.7x | 20.9x | 6.4x |
| Sat, 02 May 2026 | AU$667.0b | AU$97.9b | AU$30.9b | 16.2x | 21.6x | 6.8x |
| Mon, 30 Mar 2026 | AU$684.7b | AU$98.2b | AU$30.9b | 15.7x | 22.1x | 7x |
| Wed, 25 Feb 2026 | AU$728.9b | AU$98.1b | AU$30.9b | 17.6x | 23.6x | 7.4x |
| Fri, 23 Jan 2026 | AU$642.2b | AU$96.7b | AU$30.3b | 19.2x | 21.2x | 6.6x |
| Sun, 21 Dec 2025 | AU$649.4b | AU$96.7b | AU$30.3b | 19.1x | 21.4x | 6.7x |
| Tue, 18 Nov 2025 | AU$645.3b | AU$96.7b | AU$30.3b | 18.7x | 21.3x | 6.7x |
| Thu, 16 Oct 2025 | AU$671.8b | AU$95.7b | AU$31.6b | 17.4x | 21.3x | 7x |
| Sat, 13 Sep 2025 | AU$666.2b | AU$95.6b | AU$31.7b | 15x | 21x | 7x |
| Mon, 11 Aug 2025 | AU$638.9b | AU$94.5b | AU$31.8b | 14.6x | 20.1x | 6.8x |
| Wed, 09 Jul 2025 | AU$643.3b | AU$94.5b | AU$31.8b | 15.1x | 20.2x | 6.8x |
| Fri, 06 Jun 2025 | AU$641.2b | AU$94.6b | AU$31.8b | 15.1x | 20.2x | 6.8x |
| Sun, 04 May 2025 | AU$617.2b | AU$82.7b | AU$28.2b | 13.8x | 21.9x | 7.5x |
| Tue, 01 Apr 2025 | AU$567.5b | AU$93.3b | AU$31.7b | 12.8x | 17.9x | 6.1x |
| Thu, 27 Feb 2025 | AU$582.9b | AU$93.2b | AU$31.7b | 13.6x | 18.4x | 6.3x |
| Sat, 25 Jan 2025 | AU$607.6b | AU$92.5b | AU$31.4b | 13.8x | 19.3x | 6.6x |
| Mon, 23 Dec 2024 | AU$572.1b | AU$92.5b | AU$31.4b | 13.3x | 18.2x | 6.2x |
| Wed, 20 Nov 2024 | AU$610.6b | AU$92.5b | AU$31.4b | 14x | 19.4x | 6.6x |
| Fri, 18 Oct 2024 | AU$571.2b | AU$91.8b | AU$31.6b | 12.7x | 18.1x | 6.2x |
| Sun, 15 Sep 2024 | AU$574.8b | AU$91.9b | AU$31.6b | 12.6x | 18.2x | 6.3x |
| Tue, 13 Aug 2024 | AU$526.9b | AU$91.7b | AU$31.6b | 11.5x | 16.7x | 5.7x |
| Thu, 11 Jul 2024 | AU$526.0b | AU$91.7b | AU$31.6b | 10.9x | 16.6x | 5.7x |
| Sat, 08 Jun 2024 | AU$515.8b | AU$91.7b | AU$31.8b | 10.7x | 16.2x | 5.6x |
| Mon, 06 May 2024 | AU$490.9b | AU$92.1b | AU$32.4b | 10.8x | 15.1x | 5.3x |
| Wed, 03 Apr 2024 | AU$502.5b | AU$92.5b | AU$32.7b | 11x | 15.4x | 5.4x |
| Fri, 01 Mar 2024 | AU$491.5b | AU$92.5b | AU$32.7b | 10.8x | 15x | 5.3x |
| Sun, 28 Jan 2024 | AU$468.2b | AU$92.8b | AU$33.2b | 8.3x | 14.1x | 5x |
| Tue, 26 Dec 2023 | AU$450.6b | AU$92.8b | AU$33.2b | 8x | 13.6x | 4.9x |
| Thu, 23 Nov 2023 | AU$421.2b | AU$92.8b | AU$33.2b | 7.9x | 12.7x | 4.5x |
| Sat, 21 Oct 2023 | AU$416.5b | AU$91.0b | AU$32.5b | 7.9x | 12.8x | 4.6x |
| Mon, 18 Sep 2023 | AU$432.5b | AU$91.0b | AU$32.6b | 8.1x | 13.3x | 4.8x |
| Wed, 16 Aug 2023 | AU$429.5b | AU$91.0b | AU$32.6b | 8.5x | 13.2x | 4.7x |
| Fri, 14 Jul 2023 | AU$413.3b | AU$91.0b | AU$32.4b | 8.3x | 12.8x | 4.5x |
| Sun, 11 Jun 2023 | AU$391.9b | AU$91.0b | AU$32.4b | 8.2x | 12.1x | 4.3x |
Price to Earnings Ratio
12.1x
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 20.9x which is higher than its 3-year average PE of 17.8x.
- The industry is trading close to its 3-year average PS ratio of 6.0x.
Past Earnings Growth
- The earnings for companies in the Banks industry have declined 2.5% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.6% 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, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Australian Financials industry?
| AU Market | 0.96% | |
| Financials | -1.57% | |
| Banks | -2.14% | |
| Regional Banks | -1.77% | |
| Diversified Banks | -2.15% | |
Industry PE
- Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 43.7x.
- Analysts are expecting annual earnings growth of 27.3%, which is higher than its past year's earnings decline of 38.5% per year.
- Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 17.7x.
Forecasted Growth
- Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 38% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 5.4% 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 | |
|---|---|---|---|---|---|
| JDO Judo Capital Holdings | AU$1.43 | 2.5% +AU$39.2m | -6.5% | PB0.9x | |
| BFL BSP Financial Group | AU$8.38 | 0.2% +AU$9.3m | 10.3% | PB2.4x | |
| BBC BNK Banking | AU$0.24 | 4.3% +AU$1.2m | -20.0% | PB0.2x |
