Can Big Four Bank Stocks on ASX Perform Better in 2026

The big banks have ended FY25 with strong customer activity, healthy funding profiles and improving credit conditions but can they deliver an even bigger year in FY26?

Commonwealth Bank of Australia (ASX: CBA)

began FY26 on a steady note as the bank kept its focus on customer support, a strong balance sheet and consistent execution of its long-term strategy.

Unaudited cash NPAT for the quarter came in at about $2.6 billion which is 2% above in the same period last year. 
Operating income increased by 3% helped by growth in lending and deposit volumes along with 1.5 extra trading days in the quarter. 

More than 175,000 new retail transaction accounts were added as customer acquisition remained strong and business banking also showed positive growth with higher transaction account activity and lending spread across multiple industries.

During the quarter, CBA returned $4.4 billion in dividends and carried out $640 million in share buybacks to offset its Dividend reinvestment plan.

Westpac Banking Corporation (ASX: WBC)

reported a steady full-year result as the net interest income was $2.90 billion which was almost the same as last year and non-interest income increased to $367 million supported by stronger trading performance and better wealth management fee income.

The balance sheet stayed in good shape with total assets rising to $140.7 billion and deposits increasing to $82.8 billion.
The loan book expanded to $107.3 billion with residential mortgages continuing to make up the biggest share. 

Westpac stands to benefit from a more supportive interest rate outlook as lower rates generally lift credit demand from households and businesses, reduce mortgage stress and improve overall confidence which helps drive growth across home loans, personal credit and small business lending.

ANZ Group Holdings Limited (ASX: ANZ)

delivered a steady result for FY25 as higher lending activity and stronger deposit growth supported overall performance. 

Cash profit for the year was $5.93 billion which came in lower than last year mainly because operating expenses increased due to one-off items such as staff restructuring and regulatory settlements.

Net interest income rose 12% to $17.9 billion helped by solid growth in home lending, business loans and institutional banking. 
Average interest-earning assets expanded by $136 billion with a major contribution coming from the Suncorp Bank acquisition which added meaningful loan and deposit balances to the overall portfolio. 

National Australia Bank Limited (ASX: NAB)

posted a steady performance for FY25 as stronger momentum in the second half supported an underlying profit of $10.97 billion while cash earnings reached $7.09 billion. 

The bank kept its balance sheet in solid shape, ending the year with a CET1 ratio of 11.70% which sits comfortably above its target range.

NAB also made strong progress on its technology upgrades as cloud migration, AI-driven tools for frontline and engineering teams and the simplification of older systems helped improve overall efficiency. 

The bank also widened its digital onboarding capabilities, launched Confirmation of Payee and invested more than $900 million in fraud and scam protection during the year as NAB heads into FY26 in a strong position to deliver sustainable growth.

(Source: Company Reports)