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Australian (ASX) Banks Industry Analysis
UpdatedMay 20, 2025
DataAggregated Company Financials
Companies14
- 7D1.5%
- 3M-0.5%
- 1Y21.4%
- YTD4.1%
The Banks industry is up 1.5% in the last week, with Commonwealth Bank of Australia up 3.8%. This means that the industry has gained 21% over the past year. 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 |
|---|---|---|---|---|---|---|
| Tue, 20 May 2025 | AU$608.3b | AU$94.6b | AU$31.8b | 13.9x | 19.1x | 6.4x |
| Thu, 17 Apr 2025 | AU$576.9b | AU$93.2b | AU$31.7b | 12.7x | 18.2x | 6.2x |
| Sat, 15 Mar 2025 | AU$541.3b | AU$93.3b | AU$31.7b | 12x | 17.1x | 5.8x |
| Mon, 10 Feb 2025 | AU$624.3b | AU$92.5b | AU$31.4b | 14.4x | 19.9x | 6.7x |
| Wed, 08 Jan 2025 | AU$596.2b | AU$92.5b | AU$31.4b | 13.8x | 19x | 6.4x |
| Fri, 06 Dec 2024 | AU$609.0b | AU$92.5b | AU$31.4b | 14.1x | 19.4x | 6.6x |
| Sun, 03 Nov 2024 | AU$574.6b | AU$91.8b | AU$31.6b | 12.7x | 18.2x | 6.3x |
| Tue, 01 Oct 2024 | AU$557.1b | AU$91.8b | AU$31.5b | 12.1x | 17.7x | 6.1x |
| Thu, 29 Aug 2024 | AU$559.7b | AU$91.8b | AU$31.6b | 12.4x | 17.7x | 6.1x |
| Sat, 27 Jul 2024 | AU$540.7b | AU$91.7b | AU$31.6b | 11.1x | 17.1x | 5.9x |
| Mon, 24 Jun 2024 | AU$522.3b | AU$91.6b | AU$31.8b | 10.4x | 16.4x | 5.7x |
| Wed, 22 May 2024 | AU$505.5b | AU$91.6b | AU$31.8b | 11.1x | 15.9x | 5.5x |
| Fri, 19 Apr 2024 | AU$481.7b | AU$92.5b | AU$32.9b | 11x | 14.6x | 5.2x |
| Sun, 17 Mar 2024 | AU$489.9b | AU$92.5b | AU$32.7b | 10.7x | 15x | 5.3x |
| Tue, 13 Feb 2024 | AU$479.7b | AU$92.8b | AU$33.2b | 10.5x | 14.4x | 5.2x |
| Thu, 11 Jan 2024 | AU$455.1b | AU$92.8b | AU$33.2b | 8.3x | 13.7x | 4.9x |
| Sat, 09 Dec 2023 | AU$432.8b | AU$92.8b | AU$33.2b | 8x | 13x | 4.7x |
| Mon, 06 Nov 2023 | AU$423.1b | AU$90.9b | AU$32.5b | 7.9x | 13x | 4.7x |
| Wed, 04 Oct 2023 | AU$421.3b | AU$91.0b | AU$32.6b | 8x | 12.9x | 4.6x |
| Fri, 01 Sep 2023 | AU$428.3b | AU$91.0b | AU$32.6b | 8.3x | 13.1x | 4.7x |
| Sun, 30 Jul 2023 | AU$435.0b | AU$91.0b | AU$32.4b | 8.4x | 13.4x | 4.8x |
| Tue, 27 Jun 2023 | AU$397.4b | AU$91.0b | AU$32.4b | 8.2x | 12.3x | 4.4x |
| Thu, 25 May 2023 | AU$410.9b | AU$91.0b | AU$32.4b | 8.1x | 12.7x | 4.5x |
| Sat, 22 Apr 2023 | AU$422.7b | AU$89.2b | AU$31.3b | 9.8x | 13.5x | 4.7x |
| Mon, 20 Mar 2023 | AU$407.8b | AU$89.2b | AU$31.5b | 9.5x | 13x | 4.6x |
| Wed, 15 Feb 2023 | AU$458.6b | AU$87.6b | AU$30.9b | 10.9x | 14.8x | 5.2x |
| Fri, 13 Jan 2023 | AU$443.7b | AU$87.6b | AU$30.9b | 10.5x | 14.4x | 5.1x |
| Sun, 11 Dec 2022 | AU$438.4b | AU$87.6b | AU$30.9b | 10.6x | 14.2x | 5x |
| Tue, 08 Nov 2022 | AU$441.4b | AU$86.8b | AU$30.7b | 11x | 14.4x | 5.1x |
| Thu, 06 Oct 2022 | AU$424.6b | AU$87.7b | AU$29.9b | 11.1x | 14.2x | 4.8x |
| Sat, 03 Sep 2022 | AU$417.3b | AU$87.6b | AU$30.0b | 11.1x | 13.9x | 4.8x |
| Mon, 01 Aug 2022 | AU$425.7b | AU$87.2b | AU$30.2b | 12.5x | 14.1x | 4.9x |
| Wed, 29 Jun 2022 | AU$392.8b | AU$87.2b | AU$30.2b | 12x | 13x | 4.5x |
| Fri, 27 May 2022 | AU$448.8b | 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 19.1x which is higher than its 3-year average PE of 15.2x.
- 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 | 0.64% | |
| Financials | 1.00% | |
| Banks | 1.52% | |
| Diversified Banks | 1.54% | |
| Regional Banks | 0.45% | |
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 | |
|---|---|---|---|---|---|
| CBA Commonwealth Bank of Australia | AU$172.43 | 3.8% +AU$10.5b | 41.6% | PB3.8x | |
| NAB National Australia Bank | AU$37.21 | 4.5% +AU$4.9b | 7.2% | PB1.8x | |
| ANZ ANZ Group Holdings | AU$28.76 | 0.9% +AU$741.8m | 1.6% | PB1.2x | |
| BOQ Bank of Queensland | AU$7.69 | 1.7% +AU$85.4m | 27.3% | PB0.8x | |
| JDO Judo Capital Holdings | AU$1.44 | 4.4% +AU$67.1m | 13.4% | PB1x |