Highlights:

  • Macquarie rates CBA, NAB, and Westpac as Underperform, with ANZ rated Neutral.
  • CBA posts interim dividend of AUD 2.35 per share amid NPAT of AUD 5.44 billion.
  • NAB, Westpac, and ANZ show steady profits and dividends, though Macquarie sees limited upside.

Macquarie has issued its latest ratings on Australia’s four major banks, adjusting investor expectations following recent half-year results. The bank maintained cautious views, rating Commonwealth Bank of Australia (ASX:CBA), National Australia Bank (ASX:NAB), and Westpac (ASX:WBC) as Underperform, while ANZ (ASX:ANZ) received a Neutral rating.

CBA Reports Growth but Faces Downgrade

Commonwealth Bank posted a net profit after tax (NPAT) of AUD 5.44 billion for 1H26, supported by lending and deposit growth across core segments. Pre-provision profit rose 5% to AUD 8.13 billion. The bank declared a fully franked interim dividend of AUD 2.35 per share. Underlying net interest margin eased slightly due to competitive pressures in home lending, while operating expenses increased 5% amid technology and staffing investments. Despite the results, Macquarie rated CBA Underperform with a target price of AUD 120.

NAB, Westpac, and ANZ Performance

NAB reported stable capital levels with CET1 capital at AUD 1.5 billion in September 2025, lower than June 2025, mainly due to dividend payouts. Risk-weighted assets increased modestly, while liquidity and funding ratios remained above regulatory requirements. NAB received an Underperform rating from Macquarie with a target price of AUD 45.

Westpac recorded net profit of AUD 6.97 billion in FY25, with loans up 6% and customer deposits growing 7%. Net interest margin was 1.94%, slightly lower than FY24, while operating expenses increased 9%, partly due to restructuring and technology costs. Macquarie assigned Westpac an Underperform rating and a target of AUD 35.

ANZ posted statutory operating income of AUD 22.19 billion in year ended 30 September 2025, down 10% in profit attributable to shareholders, with cash profit at AUD 5.79 billion. Dividends remained at 83 cents per share, 70% franked. ANZ received a Neutral rating from Macquarie, with a target price of AUD 36.

Macquarie’s assessment signals cautious investor sentiment despite positive  financial results across Australia’s major banks. While profits and dividends remain stable, competitive pressures, elevated costs, and regulatory considerations have tempered upside expectations. Investors may need to weigh attractive dividend yields against these outlooks.

Frequently Asked Questions (FAQs)

  1. What are Macquarie’s ratings for the Big Four banks?
  • CBA: Underperform, target AUD 120
  • NAB: Underperform, target AUD 45
  • Westpac: Underperform, target AUD 35
  • ANZ: Neutral, target AUD 36
  1. How did CBA perform in the latest half-year results?
  • NPAT reached AUD 5.44 billion, pre-provision profit AUD 8.13 billion, and interim dividend AUD 2.35 per share, fully franked.
  1. What are the key reasons for Macquarie’s cautious outlook?
  • Competitive pressures in lending, rising operating expenses, regulatory risks, and limited upside in share prices influenced the bank ratings.