Australia’s Big Four Banks Rake In $30 Billion!Loan Growth Surges, Bad Debts Hit Record Lows, and Profits Stay Strong — Sydney Auction Clearance Rate at 70%

Week’s Key Focus

Australia’s Big Four Banks are projected to post a combined cash profit of more than $30 billion this financial year, driven by strong loan growth, a resilient economy, cost-cutting, and record-low default rates.
Westpac will kick off the bank reporting season on Monday, followed by National Australia Bank (NAB) and Macquarie Group, while ANZ and Commonwealth Bank (CBA) are set to release their results next week.
This earnings season has become a key focus for the Australian share market, with the banking sector’s strong performance prompting investors to question whether valuations have become overstretched.
After CBA led the rally earlier this year, the other three major banks have surged over the past six months — ANZ up 23%, NAB up 21%, and Westpac up 18%, while CBA has risen 3.6%. Analysts say earnings forecasts have been upgraded amid solid credit expansion, margin recovery, and rising fee income.
Barrenjoey analyst Jonathan Mott noted that Australian banks are experiencing “one of the strongest revenue environments in years,” though he cautioned that valuations are “stretched” and banks may now serve as “expensive defensives” in the ongoing global equities rally.

Opal Capital Chief Investment Officer Omkar Joshi described the sector’s current stability as a positive sign for investors, saying, “Banks are kind of boring right now — which is exactly how you want them to be.”
He added that despite competition in the mortgage market, the major banks have largely succeeded in stabilising their net interest margins.
Citi analyst Thomas Strong said banks are in an “almost Goldilocks revenue environment,” benefiting from stronger-than-expected credit growth, tight cost control, and historically low bad debts supporting their bottom line.

Market forecasts show Westpac is expected to report $6.8 billion in cash earnings, NAB around $7.1 billion, and ANZ about $6.3 billion, while CBA has already posted a 4% rise in full-year profit to $10.25 billion.
Although individual results vary slightly, total cash profits across the four major banks are expected to reach $30.6 billion, roughly in line with last year’s $30.7 billion.
Analysts say the results underscore the resilience and stability of Australia’s banking system, which continues to deliver strong profits even in a declining interest rate environment.

Auction Results Last Week

Sydney: 1,231 properties were scheduled for auction, 760 results were reported, and 534 properties were sold, achieving a clearance rate of 70%.
The total auction value reached $663,231,440, with a median house price of $1,625,500.
Melbourne: 1,762 properties were scheduled for auction, 1,234 results were reported, and 832 properties were sold, recording a clearance rate of 67%.
The total auction value was $667,230,642, with a median house price of $1,017,500.