ASX Bank Stocks Rejuvenated After Reporting Stronger Earnings

ASX big banks have reported stronger than expected profits this earnings season which led to sharp rallies but can this momentum continue through the rest of 2026?

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank of Australia (ASX: CBA) on 11 February 2026 reported a solid half year result for the period ended 31 December 2025 and the share price has risen more than 15% over the past one month.

Cash NPAT for the December half year increased 6% to $5.445 billion as operating income grew 6.6% to $15.0 billion.

The interim dividend increased to $2.35 per share which is 10 cents higher than the prior period and represents a payout ratio of about 74% on a normalised basis with current annual yield at 2.78%.

Credit quality remains stable as loan impairment expense stood at $319 million and total provisions were $6.3 billion which provide protection against geopolitical uncertainty.

New variable home loan rate changes took effect from 13 February which should support margins and management remains confident in the domestic economy.

Westpac Banking Corporation (ASX: WBC)

Westpac Banking Corporation (ASX: WBC) posted its first quarter results last Friday and reported a solid start to FY26 with higher profitability and strong capital metrics while the stock has risen 4% over the past week.

The bank reported a 5% rise in unaudited statutory net profit to $1.9 billion compared with the 2H25 quarterly average while net profit excluding notable items increased 6% to $1.9 billion.

Revenue increased 1% with net interest income up 2% due to balance sheet growth and lending expanded by $22 billion during the quarter led by 7% growth in institutional lending and 3% growth in both housing and business portfolios excluding RAMS.

The CET1 capital ratio stood at 12.3% which is above the bank’s target range while the current annual yield is 3.65% and the bank remains well placed to maintain earnings stability through FY26 due to ongoing productivity initiatives and steady credit demand.

National Australia Bank Limited (ASX: NAB)

National Australia Bank Limited (ASX: NAB) was the last of the big four banks to release its earnings update this season before the market opened on Wednesday and it reported a strong start to FY26.

Cash earnings rose 15% to $2.0 billion compared with the 2H25 quarterly average while revenue increased 6% due to higher loan volumes and improved fee income.

Net interest margin moved up by 2 basis points to 1.80% which came from better deposit pricing and disciplined balance sheet control.

The share price has climbed 12.6% over the past month and underlying profit increased 12% due to better results across customer divisions and a supportive domestic economy.

Business lending expanded and deposits grew which places NAB in a solid position to maintain earnings momentum and deliver stable returns through FY26.

ANZ Group Holdings Limited (ASX: ANZ)

ANZ Group Holdings Limited (ASX: ANZ) released its latest quarterly update last Thursday and reported a cash profit of $1.94 billion which was up 75% compared to the 2H25 quarterly average while statutory profit stood at $1.87 billion.

Cash profit excluding significant items from the prior period rose 17% which came from lower expenses and better revenue while the current annual yield stands at 4.13%.

Operating income increased 4% to $5.7 billion and expenses declined 21% which lifted overall profitability and pushed Return on Tangible Equity to 11.7%.

The cost to income ratio moved down to 49.5% under the ANZ 2030 strategy which focuses on simplification and productivity.

The CET1 ratio stood at 12.15% which was up 12 basis points from September 2025 and the bank remains well placed to carry this momentum into FY26 due to stable earnings and cost control.

(Source: Company Reports)