To The Moon

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.