Today, we briefly review our exposure to the majors banks and update our take on the group.
Australia’s banking sector has proven to be resilient over bumpy 2024. The Big Four — Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), ANZ Group Holdings (ANZ), and Westpac Banking Corporation (WBC) — delivered stellar performances in 2024, with total returns significantly outperforming the broader market (ASX200: +7.5%). Westpac led with a price gain of 40%, followed by CBA at 34.9%, NAB at 20.2%, and ANZ at 9.8%. These results reflect the sector’s ability to generate strong shareholder returns, even amidst a challenging macroeconomic environment.
The resilience of these banks lies in their ability to balance stable asset quality and earnings performance, despite sector-wide pressures on net interest margins (NIMs) and intensifying competition. Westpac, for example, managed its margins effectively while achieving loan and deposit growth in line with the system, a testament to its operational excellence. ANZ,
Disclosure: Fat Prophets and its affiliates, officers, directors, and employees may hold an interest in the securities or other financial products relating to any company or issuer discussed in this report. Fat Prophet’s disclosure of interest related to Investment Recommendations can be provided upon request to members@fatprophets.com.au.
Chart Source: Thomson Reuters
