Top 3 ASX Financial Sector Stocks to Watch Out

With strong financial position and improved operational efficiency, MQG, QBE and NAB emerge as attractive opportunities in the financial sector.

Top 3 ASX Financial Sector Stocks to Watch Out

1. Macquarie Group Limited (ASX: MQG), on 8 May 2026, published its March ending FY26, which showcased impressive performance with a 30% increase in net profit to around $4.85 billion and earnings per share of $12.77.

The group’s financial position remained solid during the year, supported by a Level 2 Common Equity Tier 1 ratio of 12.8% and a leverage ratio of 4.7%. Its liquidity coverage ratio and net stable funding ratio stood well above the minimum regulatory requirements with a value of 173% and 116%.

The group reported impressive return on equity improvement from 11.2% in FY25 to 14% in FY26. Its market capitalisation stood at approximately $95.64 billion with a partially franked dividend yield of 2.80%.

The company maintained a cautious stance for FY27 and adopted a conservative approach to capital, funding and liquidity management. This positions it well to respond to the economic uncertainties while supporting long-term financial stability.

2. QBE Insurance Group Limited (ASX: QBE), on 14 August 2026, published its June ending half year results for FY26, which showcased growth of 6% in gross written premiums compared to the previous half. The adjusted NPAT increased by around 4% compared to 1H25 to reach $1.03 billion.

The combined operating ratio stood at 92.8%, broadly in line with FY26 target. The company has delivered solid returns for the year, backed by an ROE of 17.7%. The company also completed a $450 million buyback during the year, reflecting strong management confidence in its operations.

Its market capitalisation stands at around $38.77 billion and has recently paid an interim dividend of 33 cps on 2 October, supporting its partially franked dividend yield of 4.27%

In the second half, the company will work towards driving the expense ratio down, with improved performance expected across several portfolios, anticipating a relatively better performance for the second half.

3. National Australia Bank Limited (ASX: NAB), on 17 August 2026, published its June quarter trading update, which showcased strong growth as statutory net profit improved by 32% compared to the first half quarterly average to reach $1.81 billion, with cash earnings of $1.83 billion.

The company’s Group CET1 ratio stood at 11.3%, reflecting a solid capital position. Net interest margin stood at 1.79% and its total risk-weighted assets increased by 0.7%. Both liquidity coverage ratio and net stable funding ratio stood at a comfortable position of 134% and 115%, indicating an overall strong financial position.

The bank’s market capitalisation is around $124.38 billion with a stable and fully franked dividend yield of 4.26%. Its leverage ratio stood at 4.85%.

Revenue for the quarter rose by 2% while its expenses declined by 18%, highlighting an addition of operational efficiency to the company strong financial position, making it an attractive investment choice for long-term investors.

(Source: Company Announcements)