Despite just one of the Big Four banks reporting in August, all four have seen their share prices fall by 3.5% – 6% so far this month.
So, what has caused these top ASX banking stocks to fall lower in August and what's the outlook for the rest of 2019?
Commonwealth Bank's lacklustre result
Commonwealth Bank of Australia (ASX: CBA) was the only bank to report its full-year earnings in August, with the other three set to report in late October and early November.
In the first major result since the fallout of the 2018 Royal Commission, Commonwealth Bank reported softer earnings and overall profit just below market expectations.
However, with an $8.5 billion cash profit for the year, Australia's largest bank still made a lot of money for shareholders despite the tumultuous 12 months.
CEO Matt Comyn did note potential headwinds for growth in FY2020 which saw the CBA share price (and those of its peers) head lower in August.
What's the outlook for September and beyond?
Despite the Big Four share prices underperforming in August, I don't think we'll see too much share price movement in September or October, barring any major announcements.
I'd think Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corporation (ASX: WBC) would be laying low ahead of results in a kind of blackout period.
If Commonwealth Bank's results are anything to go by, I'd be expecting to see lower earnings across the Big Four – but the big question is what's ahead for 2020?
Are any of the Big Four shares in the buy zone?
While the Commonwealth Bank share price looks like it could be good value at $77.41 per share, I think the other stock that could be good value is National Australia Bank (NAB).
Despite slashing its dividend earlier this year, NAB is still offering its customers a 6.7% per annum distribution which is better than the other three big banks.
With NAB having sured-up its balance sheet and bolstered its regulatory capital, I think the NAB share price could be a buy if it can post a decent result before the end of the year.
