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Australian (ASX) Financials Sector Analysis

UpdatedAug 27, 2025
DataAggregated Company Financials
Companies132
  • 7D0.7%
  • 3M6.4%
  • 1Y17.6%
  • YTD10.7%

The Financials industry has stayed flat over the last week. The past year has been better, since the industry has gained 18% in that time. Looking forward, earnings are forecast to grow by 4.4% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 27 Aug 2025AU$973.0bAU$222.4bAU$47.3b19x20.6x4.4x
Fri, 25 Jul 2025AU$937.5bAU$219.9bAU$46.6b16.3x20.1x4.3x
Sun, 22 Jun 2025AU$941.6bAU$220.6bAU$46.6b16.2x20.2x4.3x
Tue, 20 May 2025AU$902.7bAU$220.8bAU$46.7b15.4x19.3x4.1x
Thu, 17 Apr 2025AU$846.5bAU$219.9bAU$46.7b14.5x18.1x3.8x
Sat, 15 Mar 2025AU$817.4bAU$220.1bAU$46.7b14.2x17.5x3.7x
Mon, 10 Feb 2025AU$929.4bAU$216.3bAU$44.8b17.6x20.7x4.3x
Wed, 08 Jan 2025AU$896.4bAU$215.8bAU$44.0b18x20.4x4.2x
Fri, 06 Dec 2024AU$915.6bAU$215.1bAU$43.9b18.6x20.9x4.3x
Sun, 03 Nov 2024AU$859.5bAU$213.4bAU$44.0b17.3x19.5x4x
Tue, 01 Oct 2024AU$841.2bAU$211.3bAU$43.6b17.6x19.3x4x
Thu, 29 Aug 2024AU$832.9bAU$211.6bAU$44.2b18.4x18.9x3.9x
Sat, 27 Jul 2024AU$811.9bAU$210.7bAU$44.1b18.3x18.4x3.9x
Mon, 24 Jun 2024AU$785.4bAU$210.3bAU$44.2b17.7x17.8x3.7x
Wed, 22 May 2024AU$760.9bAU$210.2bAU$44.2b17.4x17.2x3.6x
Fri, 19 Apr 2024AU$735.0bAU$219.9bAU$46.2b17.5x15.9x3.3x
Sun, 17 Mar 2024AU$748.9bAU$219.2bAU$46.1b17.7x16.2x3.4x
Tue, 13 Feb 2024AU$730.0bAU$198.1bAU$45.7b17.5x16x3.7x
Thu, 11 Jan 2024AU$694.8bAU$198.3bAU$45.5b16.8x15.3x3.5x
Sat, 09 Dec 2023AU$663.1bAU$198.6bAU$45.5b16.7x14.6x3.3x
Mon, 06 Nov 2023AU$646.9bAU$196.5bAU$44.5b16.3x14.5x3.3x
Wed, 04 Oct 2023AU$649.8bAU$197.8bAU$45.6b15.9x14.3x3.3x
Fri, 01 Sep 2023AU$663.6bAU$198.4bAU$45.9b16.6x14.5x3.3x
Sun, 30 Jul 2023AU$672.4bAU$186.9bAU$44.4b19.9x15.1x3.6x
Tue, 27 Jun 2023AU$609.2bAU$170.8bAU$43.7b16.6x13.9x3.6x
Thu, 25 May 2023AU$628.5bAU$185.4bAU$43.5b17.8x14.4x3.4x
Sat, 22 Apr 2023AU$643.1bAU$182.2bAU$42.1b17.8x15.3x3.5x
Mon, 20 Mar 2023AU$618.8bAU$181.4bAU$42.6b16.7x14.5x3.4x
Wed, 15 Feb 2023AU$681.4bAU$178.9bAU$40.6b17.1x16.8x3.8x
Fri, 13 Jan 2023AU$657.2bAU$177.8bAU$40.2b15x16.3x3.7x
Sun, 11 Dec 2022AU$646.9bAU$178.1bAU$40.2b14.1x16.1x3.6x
Tue, 08 Nov 2022AU$647.3bAU$178.4bAU$40.1b14.9x16.2x3.6x
Thu, 06 Oct 2022AU$628.1bAU$178.3bAU$39.0b16.3x16.1x3.5x
Sat, 03 Sep 2022AU$630.8bAU$260.6bAU$40.7b14.9x15.5x2.4x
Price to Earnings Ratio

15.5x


Total Market Cap: AU$630.8bTotal Earnings: AU$40.7bTotal Revenue: AU$260.6bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Financials Sector Price to Earnings3Y Average 17.1x202320242025
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 20.6x which is higher than its 3-year average PE of 17.1x.
  • The 3-year average PS ratio of 3.7x is lower than the industry's current PS ratio of 4.4x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 5.1% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.1% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the Australian Financials sector?

AU Market0.32%
Financials0.67%
Consumer Finance15.31%
Banks0.86%
Capital Markets0.67%
Mortgage Finance0%0
Mortgage REITs0%0
Diversified Financial-0.34%
Insurance-1.34%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 4.5%, which is higher than its past year's earnings decline of 3.2% per year.
  • Investors are most pessimistic about the Insurance industry, which is trading below its 3-year average of 19.6x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Insurance 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
MQG Macquarie GroupAU$225.452.7%
+AU$2.2b		5.8%PE22.9x
ZIP Zip CoAU$4.0533.2%
+AU$1.3b		70.2%PE65.4x
WBC Westpac BankingAU$38.500.7%
+AU$922.2m		24.9%PB1.8x
HUB HUB24AU$108.833.8%
+AU$380.9m		99.9%PE111.3x
BEN Bendigo and Adelaide BankAU$13.375.1%
+AU$337.1m		12.2%PB1.1x

Latest News

NWL
AU$35.29
Netwealth Group
7D
-2.0%
1Y
57.2%

Acquisitions Like Xeppo And Flux Could Strain Margins But Broaden Services

Despite a notable reduction in consensus revenue growth forecasts, a slight decrease in Netwealth Group’s future P/E suggests improving valuation efficiency, supporting a minor increase in the analyst price target from A$31.99 to A$32.98. What's in the News Netwealth Group announced an ordinary fully franked final dividend of AUD 0.21 per share for the six months ended June 30, 2025, payable on September 25, 2025.
MQG
AU$225.45
Macquarie Group
7D
2.7%
1Y
5.8%

Asset Management And Digitization Investments Will Improve Future Efficiency

With both the Future P/E and Net Profit Margin for Macquarie Group largely unchanged, the consensus analyst price target has seen only a marginal increase to A$221.24. What's in the News Macquarie Group is set to acquire a 40% minority stake in Portuguese hospital operator Luz Saúde, outbidding CVC Capital Partners and KKR, with the deal valuing Luz Saúde at over €1 billion.
BEN
AU$13.37
Bendigo and Adelaide Bank
7D
5.1%
1Y
12.2%
MAF
AU$9.39
MA Financial Group
7D
13.4%
1Y
83.4%
ZIP
AU$4.05
Zip Co
7D
33.2%
1Y
70.2%

Company To Leverage Stripe Partnership And New Products For Future Success

The upward revision in Zip Co's price target is underpinned by a notable improvement in net profit margin despite a moderation in revenue growth expectations, resulting in a new consensus analyst price target of A$4.31. What's in the News Completed repurchase of 14.8 million shares (1.13%) for AUD 29.8 million under buyback program.
PNI
AU$21.80
Pinnacle Investment Management Group
7D
3.8%
1Y
26.5%
CBA
AU$169.83
Commonwealth Bank of Australia
7D
-1.5%
1Y
22.6%
HUB
AU$108.83
HUB24
7D
3.8%
1Y
99.9%
NAB
AU$41.95
National Australia Bank
7D
-0.2%
1Y
11.3%
WBC
AU$38.50
Westpac Banking
7D
0.7%
1Y
24.9%
SDF
AU$6.20
Steadfast Group
7D
-2.4%
1Y
-1.6%

Steadfast Group Limited's (ASX:SDF) Business Is Yet to Catch Up With Its Share Price

Aug 18
Steadfast Group Limited's (ASX:SDF) Business Is Yet to Catch Up With Its Share Price
IAG
AU$8.69
Insurance Australia Group
7D
-4.5%
1Y
16.0%
SOL
AU$43.22
Washington H. Soul Pattinson
7D
1.6%
1Y
26.5%
QBE
AU$21.23
QBE Insurance Group
7D
-1.6%
1Y
34.4%
MPL
AU$5.15
Medibank Private
7D
-1.5%
1Y
32.7%

Some Shareholders Feeling Restless Over Medibank Private Limited's (ASX:MPL) P/E Ratio

Jun 19
Some Shareholders Feeling Restless Over Medibank Private Limited's (ASX:MPL) P/E Ratio
ASX
AU$62.19
ASX
7D
-2.9%
1Y
2.1%