It was another bumper week for the ASX 200 this week headlined by more big four bank earnings.
Here’s a closer look at what was driving the S&P/ASX 200 Index (INDEXASX: XJO) higher throughout the week.
1. Is the ‘big four’ golden era coming to an end?
The days of double digit billion-dollar profits could be coming to an end for the big four banks.
Both banks saw net profit and underlying cash profit slide lower as customer remediation and regulatory capital requirements restricted earnings.
The NAB share price climbed higher on Thursday despite slashing its final dividend by 16% to 83 cents per share.
NAB’s cash earnings slumped 10.6% to $5.1 billion compared to FY18 numbers, while Westpac recorded a 22% drop to $3.3 billion.
2. Zip leads ASX 200 this week with Amazon deal
The Zip Co Ltd (ASX: Z1P) share price rocketed higher early on the ASX 200 this week after signing a new agreement with Amazon’s Australian arm.
Zip shares opened 17.68% higher at $4.06 per share on Thursday after announcing the deal to be integrated with amazon.com.au.
It’s a big deal for Zip as it continues to gain on Afterpay Touch Group Ltd (ASX: APT) as the leading buy now, pay later platform.
3. Xero still has growth left in the tank
Xero Ltd (ASX: XRO) bucked the declining WAAAX share price trend with a solid earnings result on Thursday.
While fellow WAAAX stocks such as Afterpay have been under pressure in recent months, the Xero share price has been quietly climbing higher.
Xero was a top performer on the ASX 200 this week after posting a NZ$1.3 million net profit on Thursday.
Xero shares rocketed to a record high of $75.57 per share on the latest news, which indicates further growth could be in store.
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Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of National Australia Bank Limited and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.