It was a mixed bag for ASX 200 bank stocks in February. But why?
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The S&P/ASX 200 Index (ASX: XJO) fell 4.2% in February, with two of the big four ASX 200 bank stocks moderately beating that performance and two falling harder.
Here’s how their share prices moved from market close on 31 January through to market close on 28 February:
- Commonwealth Bank of Australia (ASX: CBA) shares declined 2.4%
- ANZ Group Holdings Ltd (ASX: ANZ) shares fell 2.7%
- National Australia Bank Ltd (ASX: NAB) shares plummeted 12.1%
- Westpac Banking Corp (ASX: WBC) shares dropped 5.7%
Here’s what’s been happening with the ASX 200 bank stocks in the month just past.
CBA shares lead the pack
Despite all the feedback we hear about the overvalued CBA share price, CommBank shares enjoyed the strongest run amongst the ASX 200 bank stocks in February.
In fact, on 13 February, the CBA share price notched a new all-time closing high of $166.72.
It’s also worth noting that CBA shares were traded ex-dividend on 19 February. And it’s common to see a company’s share price fall after the stock trades without rights to the upcoming dividend.
Australia’s biggest bank reported its half-year results on 12 February. With cash net profits up 2% year on year to $5.13 billion, management boosted the fully franked interim dividend by 5% to $2.25 a share.
Add that back into the CBA share price at market close on 28 February, and the accumulated value of CBA shares only fell by 1.0% over the month.
What did the other ASX 200 bank stocks report?
CBA was the only one of the ASX 200 bank stocks to report half-year results and declare a dividend in February.
But investors gained valuable insights from the quarterly updates released by the other three big banks.
Tackling this in the order in which they were released, Westpac reported its first-quarter update on 17 February.
Westpac shares closed the day down 4.1% after the bank revealed its net interest income fell 6% for the three months to 31 December.
Although net profits of $1.9 billion were up 3% from the quarterly average reported during the second half of FY 2024, shares may have come under pressure, with Westpac’s net interest margin (NIM) slipping 0.02% to 1.81%.
Two days later, on 19 February, the NAB share price closed down a precipitous 8.1% after the ASX 200 bank stock released its own quarterly update.
Along with a small retrace in NIM over the three months, investors look to have favoured their sell buttons with NAB reporting a 2% year on year decline in cash earnings.
Rounding off the list, the ANZ share price fell 3.1% on 20 February when the big four bank released its own quarterly update.
Investors may have taken note that ANZ reported a 6% year on year increase in its Risk Weighted Assets (RWA). The big four banks’ Exposure at Default (EAD) also increased by 6%.
Taking a step back…
While February was a mixed bag, the ASX 200 bank stocks are still all in the green over 12 months.
Since this time last year:
- CBA shares are up 33.56%
- NAB shares are up 2.67%
- Westpac shares are up 19.50%
- ANZ shares are up 2.81%
And these figures don’t include the two dividends each of the big four banks has paid to shareholders over the year.
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.