3 ASX Bank Stocks Holding Up as Miners Slide and RBA Rate Hike Odds Rise

Australian share markets have shown a clear divergence in recent sessions. Materials and resources stocks have faced pressure from softer commodity prices, production updates and broader risk-off moves, while the major banks have provided support to the S&P/ASX 200. At the same time, market pricing for a Reserve Bank of Australia cash rate increase has risen after comments from policymakers on the inflation outlook.

The cash rate currently stands at 4.60%. Odds of a further 25-basis-point rise at the early November meeting have moved higher, with market-implied probabilities recently around the 50% mark or above following remarks that the inflation outlook looked materially worse than earlier projections. Upcoming quarterly CPI data remains a key focus for the policy decision.

Against this backdrop, financials have absorbed capital rotation away from the mining sector on several days. Here are three of the major bank stocks that have featured in the more resilient price action.

1. Commonwealth Bank of Australia (ASX: CBA)

CBA has been one of the stronger performers among the large banks in recent trading. On 23 October the shares closed at $164.00, up 4.35% on the day, helping the financials sector post solid gains while materials declined more than 3%.

As Australia’s largest bank by market capitalisation, CBA carries significant weight in the ASX 200. Its recent moves have occurred against a backdrop of ongoing investor attention on net interest margins, credit quality and household balance sheets under higher interest rates. The stock has shown periods of relative strength even as broader commodity-linked names have retreated.

2. National Australia Bank (ASX: NAB)

NAB shares also participated in the recent bank rebound. The stock closed at $41.31 on 23 October, rising 3.25%. Earlier in the month it had shown mixed sessions, including reaction to the bank’s restructuring plans that involve workforce reductions aimed at simplifying operations.

NAB remains a major player in business lending. Market focus continues to rest on how higher funding costs and slower credit growth may affect margins and loan impairments. Its recent price action has aligned with the broader financials sector’s ability to offset weakness elsewhere in the index.

3. Westpac Banking Corporation (ASX: WBC)

Westpac has similarly contributed to financials’ relative resilience. The shares advanced alongside the other majors in sessions where miners extended losses, reflecting investor preference for the sector amid commodity price softness and shifting rate expectations.

Westpac’s performance sits within the same set of sector themes: the interplay between policy rates, net interest margins, and the health of consumer and business lending books. Like its peers, it has benefited at times from defensive flows when materials and resources faced selling pressure.

Market Context

The contrast has been visible in sector indices. Materials have recorded notable daily declines, with the sub-index touching multi-month lows in some recent sessions on copper and iron ore softness, production reports from major miners and higher energy costs. Financials, by comparison, have posted gains of more than 2% on days when banks attracted buying interest.

This rotation has helped keep the ASX 200 relatively steady in some sessions despite the resources drag. Higher rate-hike odds introduce two-sided considerations for the banks: potential support for margins on the one hand, and increased pressure on borrowers and credit demand on the other.

The three stocks highlighted have featured in the stronger daily moves within financials as the market digests these cross-currents. Price action remains sensitive to inflation data, RBA communications and commodity trends in the period ahead.

(Source:Company reports)