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The Big Four Banks

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Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked 18/04/2026

The Big Four Banks

Hi Market Matters Team In Tuesday's morning report - Stocks With Plenty to Gain From AI Cost Savings with the major banks already well down this path. you wrote "We can see the ASX banks pushing to new highs through 2026 with ANZ and Westpac remaining our preferred picks. MM is bullish towards the Australian Banks" However Tues Westpac flagged Middle East conflict impacts which saw the Banking sector lower for the rest of the week. Do you expect the other Banks will also be impacted? Are you still bullish the Banks ? regards Debbie

Answer

Hi Debbie,

A well-timed question which allows us to clarify how we see the banks ahead of Mays reports for ANZ, NAB and Westpac:

This week’s prudent cautionary comments about the Australian Consumer by Westpac are likely to weigh on the sector into Mays reporting season.
The banks are likely to cause ongoing underperformance by the ASX compared to US stocks into next month, e.g. a test of the $36-37 area by Westpac wouldn’t surprise.
However, we caution the bears around getting too excited as the markets already building in some “bad news” across the sector into May.
We can indeed still see the “Big Four Banks” making fresh highs through 2026 but that’s an eight-month journey.
However, note, we are under-weight the banks in our Active Growth Portfolio, preferring the resources sector to drive the index higher moving forward.

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Westpac Banking Corp (WBC)

LAST UPDATED 17/04/2026 12:12

Latest Reports

Weekend report 18/04/2026

Weekend Q&A: US stocks punch to new all-time highs as the Strait of Hormuz opens

The ASX200 finished the week down -0.2%, snapping a 3-week winning streak as it failed to embrace the strength across global indices. A +13% surge by the tech sector wasn't enough to offset losses by the influential banks, with the financial sector ending the week down -2.1%. Westpac set the tone early in the week, flagging that interest-rate volatility tied to the Iran conflict had hit its market’s income and prompted higher credit provisions. While not unexpected given rising rates, cost-of-living pressures and higher fuel prices, the update reinforced a cautious “if in doubt, get out” stance from investors ahead of May results from ANZ, NAB and Westpac

Afternoon report 17/04/2026

The Match Out: ASX drifts as ZIP surges and banks stay under pressure

The ASX 200 slipped today, ending the session lower, awaiting further clarity on negotiations around the US-Iran ceasefire and the reopening of the Strait of Hormuz. The market snapped a three-week winning streak after the sharp rebound seen earlier in the month, though the pullback looks more like a period of consolidation rather than a meaningful shift in the broader trend.