Narrative Update • May 16
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Australian (ASX) Banks Industry Analysis
UpdatedMay 26, 2026
DataAggregated Company Financials
Companies15
- 7D2.9%
- 3M-11.9%
- 1Y4.2%
- YTD-2.6%
In the last week, the Banks industry is up 2.9%, with Commonwealth Bank of Australia leading the way, up 2.4%. This means that the industry has gained 3.7% over the past year. Earnings are forecast to grow by 5.6% 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, 26 May 2026 | AU$642.4b | AU$98.3b | AU$30.0b | 15.4x | 21.4x | 6.5x |
| Thu, 23 Apr 2026 | AU$676.9b | AU$98.1b | AU$30.9b | 15.5x | 21.9x | 6.9x |
| Sat, 21 Mar 2026 | AU$699.2b | AU$98.1b | AU$30.9b | 16.6x | 22.6x | 7.1x |
| Mon, 16 Feb 2026 | AU$715.1b | AU$97.5b | AU$30.6b | 20.4x | 23.4x | 7.3x |
| Wed, 14 Jan 2026 | AU$647.5b | AU$96.7b | AU$30.3b | 19.1x | 21.4x | 6.7x |
| Fri, 12 Dec 2025 | AU$636.3b | AU$96.7b | AU$30.3b | 18.8x | 21x | 6.6x |
| Sun, 09 Nov 2025 | AU$687.9b | AU$96.1b | AU$31.2b | 17.7x | 22.1x | 7.2x |
| Tue, 07 Oct 2025 | AU$675.3b | AU$95.6b | AU$31.7b | 15.3x | 21.3x | 7.1x |
| Thu, 04 Sep 2025 | AU$646.3b | AU$95.7b | AU$31.7b | 14.6x | 20.4x | 6.8x |
| Sat, 02 Aug 2025 | AU$635.1b | AU$94.6b | AU$31.8b | 14.4x | 20x | 6.7x |
| Mon, 30 Jun 2025 | AU$651.2b | AU$94.6b | AU$31.8b | 15.1x | 20.5x | 6.9x |
| Wed, 28 May 2025 | AU$621.3b | AU$94.6b | AU$31.8b | 14.1x | 19.5x | 6.6x |
| Fri, 25 Apr 2025 | AU$595.3b | AU$93.3b | AU$31.7b | 13.1x | 18.8x | 6.4x |
| Sun, 23 Mar 2025 | AU$553.6b | AU$93.3b | AU$31.7b | 12.4x | 17.5x | 5.9x |
| Tue, 18 Feb 2025 | AU$624.3b | AU$93.1b | AU$31.7b | 14.5x | 19.7x | 6.7x |
| Thu, 16 Jan 2025 | AU$581.8b | AU$92.5b | AU$31.4b | 13.6x | 18.5x | 6.3x |
| Sat, 14 Dec 2024 | AU$594.7b | AU$92.5b | AU$31.4b | 13.5x | 18.9x | 6.4x |
| Mon, 11 Nov 2024 | AU$594.7b | AU$92.5b | AU$31.4b | 13x | 18.9x | 6.4x |
| Wed, 09 Oct 2024 | AU$552.1b | AU$91.8b | AU$31.6b | 12.1x | 17.5x | 6x |
| Fri, 06 Sep 2024 | AU$573.4b | AU$91.9b | AU$31.6b | 12.3x | 18.2x | 6.2x |
| Sun, 04 Aug 2024 | AU$536.6b | AU$91.7b | AU$31.6b | 11.4x | 17x | 5.9x |
| Tue, 02 Jul 2024 | AU$517.7b | AU$91.7b | AU$31.6b | 10.5x | 16.4x | 5.6x |
| Thu, 30 May 2024 | AU$491.1b | AU$91.7b | AU$31.8b | 10.5x | 15.5x | 5.4x |
| Sat, 27 Apr 2024 | AU$480.4b | AU$81.6b | AU$28.7b | 10.9x | 16.7x | 5.9x |
| Mon, 25 Mar 2024 | AU$497.9b | AU$92.5b | AU$32.7b | 11x | 15.2x | 5.4x |
| Wed, 21 Feb 2024 | AU$487.5b | AU$92.6b | AU$32.8b | 10.1x | 14.8x | 5.3x |
| Fri, 19 Jan 2024 | AU$455.5b | AU$92.8b | AU$33.2b | 8.1x | 13.7x | 4.9x |
| Sun, 17 Dec 2023 | AU$447.3b | AU$92.8b | AU$33.2b | 7.9x | 13.5x | 4.8x |
| Tue, 14 Nov 2023 | AU$420.9b | AU$92.5b | AU$33.3b | 7.9x | 12.7x | 4.6x |
| Thu, 12 Oct 2023 | AU$424.8b | AU$91.0b | AU$32.6b | 8.1x | 13x | 4.7x |
| Sat, 09 Sep 2023 | AU$420.7b | AU$91.0b | AU$32.6b | 8.2x | 12.9x | 4.6x |
| Mon, 07 Aug 2023 | AU$425.4b | AU$91.0b | AU$32.4b | 8.4x | 13.1x | 4.7x |
| Wed, 05 Jul 2023 | AU$416.7b | AU$91.0b | AU$32.4b | 8.3x | 12.9x | 4.6x |
| Fri, 02 Jun 2023 | AU$397.4b | AU$91.0b | AU$32.4b | 8.2x | 12.3x | 4.4x |
Price to Earnings Ratio
12.3x
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 21.4x which is higher than its 3-year average PE of 17.7x.
- 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 | 1.96% | |
| Financials | 2.10% | |
| Banks | 2.91% | |
| Diversified Banks | 2.96% | |
| Regional Banks | -0.12% | |
Industry PE
- Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 42.6x.
- Analysts are expecting annual earnings growth of 25.2%, 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 25% 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 5.3% 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 | |
|---|---|---|---|---|---|
| NAB National Australia Bank | AU$37.99 | 2.6% +AU$2.9b | 0.6% | PB1.9x | |
| CBA Commonwealth Bank of Australia | AU$164.30 | 0.9% +AU$2.4b | -6.3% | PB3.6x | |
| WBC Westpac Banking | AU$36.61 | 0.6% +AU$751.3m | 15.2% | PB1.8x | |
| ANZ ANZ Group Holdings | AU$35.66 | 0.4% +AU$421.5m | 22.7% | PB1.5x | |
| JDO Judo Capital Holdings | AU$1.39 | 2.6% +AU$39.2m | -1.8% | PB0.9x |
