The Best ASX Bank Stocks
to buy Now In
March 2024

Check out our Industry Experts’ report and
analysis on the Best Bank Stocks right now in ASX

The Best ASX Bank Stocks
to buy Now In
March 2024

Check out our Industry Experts’ report and
analysis on the Best Bank Stocks right now in ASX

Overview of the Australian Banking Sector

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Australia’s ASX (Australian Securities Exchange) is home to several notable banking stocks, constituting a crucial sector of the country's economy and infrastructure. These banks, given their sizeable market capitalization, often dictate the direction of the ASX. From established entities like the Big Four to burgeoning prospects like Bendigo Bank, the ASX banking sector is a dynamic landscape for many investors.

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Australia’s ASX (Australian Securities Exchange) is home to several notable banking stocks, constituting a crucial sector of the country's economy and infrastructure. These banks, given their sizeable market capitalization, often dictate the direction of the ASX.

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The Australian banking sector is one of the more peculiar in the world. The market is dominated by the so-called Big Four (CBA, ANZ, NAB and Westpac), as well as Macquarie. Then there are a handful of rising newcomers and a handful of smaller, region-specific entities such as the Bank of Queensland. Even though these banks may not have the same market cap as their bigger counterparts, they often provide targeted banking services to specific demographics, thereby contributing to the sector's overall performance.

supplier 2

The Australian banking sector is one of the more peculiar in the world. The market is dominated by the so-called Big Four (CBA, ANZ, NAB and Westpac), as well as Macquarie. Then there are a handful of rising newcomers and a handful of smaller, region-specific entities such as the Bank of Queensland. Even though these banks may not have the same market cap as their bigger counterparts, they often provide targeted banking services to specific demographics, thereby contributing to the sector's overall performance.

diversify 1

The banking industry serves companies with a wide range of services, from loans and asset management to insurance and financial consulting. But even the Big Four have their own individual specialties and competitive advantages over their peers. Even though these banks may not have the same market cap as their bigger counterparts, they often provide targeted banking services to specific demographics, thereby contributing to the sector's overall performance.

diversify 1

The banking industry serves companies with a wide range of services, from loans and asset management to insurance and financial consulting. But even the Big Four have their own individual specialties and competitive advantages over their peers. Even though these banks may not have the same market cap as their bigger counterparts, they often provide targeted banking services to specific demographics, thereby contributing to the sector's overall performance.

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Future Outlook of the ASX Banking Sector

Investors are continuously looking for trends that could potentially drive the next wave of growth in ASX bank shares. With the accelerated digitalisation of the banking services prompted by the global pandemic, the focus on fintech and digital banking solutions is more profound than ever. Emerging institutions like Judo Capital Holdings have already begun to reshape the landscape with a tech-first approach, posing a competitive challenge to traditional banking giants.

Moreover, banks are increasingly concentrating on sustainable and socially responsible banking practices in response to growing consumer and investor demands. Factors such as climate change and social governance are set to become critical determinants of a bank's attractiveness in the future.

Despite potential regulatory challenges and macroeconomic uncertainties, ASX bank shares are likely to remain a cornerstone of the Australian stock market. The ability to adapt to these evolving trends and consumer demands will be key to their continued success and growth.

Top 3 ASX Banking Stocks to buy

CBA (ASX:CBA)

CBA (ASX:CBA) is Australia's largest bank with a market capitalisation of ~$170bn as of September 2023. We think it is one of the top bank stocks to buy because it is holding up better than its peers amidst the mortgage wars, ironically because it decided to step away rather than fight it - most notably by eliminating cashback offers for new customers. It recorded a $10.2bn NPAT, a figure up 5% from FY22 and its NIM (Net Interest Margin) was 2.07%.

Bendigo and Adelaide Bank (ASX:BEN)

Bendigo and Adelaide Bank (ASX:BEN) is up 9% in the last year at a time when most other banks outside the Big 4 have struggled because of the mortgage wars and investor fears from the US Regional Banking crisis. In FY23, it delivered a $497m statutory profit, a 1.94% Net Interest Margin and an 8.6% Return on Equity.

Macquarie Bank (ASX:MQG)

Macquarie (ASX:MQG) is the most unique bank stock on the ASX. Although it has retail banking operations, it is most known for its international investments and successful track record with them. It oversees investments in over 30 countries close to $800bn and is even challenging the Big Four in the Australian home loan markets (being the next largest lender).

Top 3 ASX Banking Stocks to buy

CBA (ASX:CBA)

CBA (ASX:CBA) is Australia's largest bank with a market capitalisation of ~$170bn as of September 2023. We think it is one of the top bank stocks to buy because it is holding up better than its peers amidst the mortgage wars, ironically because it decided to step away rather than fight it - most notably by eliminating cashback offers for new customers. It recorded a $10.2bn NPAT, a figure up 5% from FY22 and its NIM (Net Interest Margin) was 2.07%.

Bendigo and Adelaide Bank (ASX:BEN)

Bendigo and Adelaide Bank (ASX:BEN) is up 9% in the last year at a time when most other banks outside the Big 4 have struggled because of the mortgage wars and investor fears from the US Regional Banking crisis. In FY23, it delivered a $497m statutory profit, a 1.94% Net Interest Margin and an 8.6% Return on Equity.

Macquarie Bank (ASX:MQG)

Macquarie (ASX:MQG) is the most unique bank stock on the ASX. Although it has retail banking operations, it is most known for its international investments and successful track record with them. It oversees investments in over 30 countries close to $800bn and is even challenging the Big Four in the Australian home loan markets (being the next largest lender).


Frequently Asked Questions

You can invest money in ASX bank shares through a broker that provides access to the Australian Securities Exchange. You'll need to open a trading account, deposit funds, and then you can begin trading by buying and selling shares.

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