Australia’s big four banks — ANZ, Westpac, NAB and Commonwealth Bank of Australia — remain core holdings for many investors and a major driver of the S&P/ASX 200 Index. But in 2025, their performances have diverged sharply.
So far this year, ANZ has been the clear winner with a 36% gain, followed by Westpac at +27% and NAB at +18%. CBA, despite hitting record highs earlier in the year, has underperformed with only about 7% share price growth year-to-date, and has fallen more than 15% from its June peak above $189.
Below is a brief look at how each bank has traded this year, and what their latest earnings tell us.
ANZ: Best Share Price Performance, Softer FY25 Results
$ANZ GROUP HOLDINGS LTD(ANZ.AU)$ surged from $28.59 to around $36.94, making it the standout performer this year.
But its newly released FY25 full-year results paint a more mixed picture:
FY25 Financial Highlights
Statutory profit: $5.89B, –10% YoY
Cash profit: $5.79B, –14% YoY
Cash profit (ex-significant items): $6.90B, flat YoY
Operating income: $21.90B, +5%
Operating expenses: $12.88B, +20% (or +11% ex-items)
Final dividend: 83c, total FY dividend 166c (partially franked)
ANZ’s results were heavily affected by $1.1B in significant items, including ASIC settlement costs, restructuring charges and impairments.Excluding these, core profitability was stable — supporting the bank’s view that FY26 should look “cleaner” as restructuring benefits begin to flow.
Westpac: Lending and Deposit Growth, but Higher Costs Hit Profit
$WESTPAC BANKING CORPORATION(WBC.AU)$ delivered a strong 27% share price gain this year.
In its latest full-year result, Westpac reported:
Net interest income: +3%
Loans: +6%
Customer deposits: +7% (including +10% consumer deposits)
Operating expenses: +9%, weighing on earnings
Net profit after tax: $6.99B, down 1%
Despite softer profit, Westpac lifted its full-year dividend to $1.53 per share.Recent price weakness reflects the stock trading ex-dividend, not deteriorating fundamentals.
NAB: Revenue Up, Earnings Slightly Below Expectations
$NATIONAL AUSTRALIA BANK LTD(NAB.AU)$ shares are up 18% this year, benefiting from improving momentum in the second half.
Its FY25 results showed:
Revenue: +2.9%
Expenses: +4.6% (including $130M remediation costs)
Cash earnings: $7.09B, slightly below forecasts
Dividend: Raised to 170 cents per share
Underlying profit still increased, asset quality improved, and management maintains a positive outlook heading into FY26.
CBA: Strong Volumes, Margin Pressure, Weakest Share Price Performance
$COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ hit multiple record highs early in 2025, but its Q1 update triggered a sharp sell-off.
For the three months to 30 September, CBA reported:
Operating income: +3%
Home loans: +$9.3B (1.1× system)
Household deposits: +$17.8B (1.2× system)
Cash NPAT: $2.6B, up 1%
However, net interest margin fell, and costs rose 4%, largely due to wage and IT expenses.
Given CBA’s premium valuation, the “solid but not spectacular” update was enough to push the stock down 5–6%, cementing its position as the worst performer of 2025.
Today’s Topic:
Which bank do you think will outperform in FY26? Share your thoughts in the comments below.
Disclaimer:
This material is for informational purposes only and does not constitute investment advice. All investments carry risk, including the possible loss of principal. Please conduct your own research and consult a licensed financial advisor before making any investment decisions.
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