S&P/ASX 200 Index (ASX: XJO) banks have all outperformed the benchmark index over the past month.
Since the opening bell on 26 September, the ASX 200 is up a welcome 5.28%.
As for the ASX 200 banks:
- Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares have gained 12.15%
- Commonwealth Bank of Australia (ASX: CBA) shares are up 8.96%
- Westpac Banking Corp (ASX: WBC) shares are up 13.36%
- National Australia Bank Ltd (ASX: NAB) shares have gained 9.27%
And that doesn't include dividends. All of the big four banks pay fully franked dividends, offering investors some tax friendly income alongside potential share price gains.
While the past month has been a good one for ASX 200 banks, they could be in for some more tailwinds ahead, thanks to the latest Australian Federal budget.
One million new homes shine spotlight on ASX 200 banks
The budget Treasurer Jim Chalmers unveiled to parliament largely met with expectations from the election promises that helped propel Labor to victory.
Among the keystones was the introduction of the National Housing Accord with state governments and industry to build one million new homes over a period of five years, commencing in 2024.
Saxo Markets strategist, Jessica Amir, noted this could offer some support to the ASX 200 banks.
According to Amir:
The government will establish a $10 billion housing Australia future fund, with an aim of providing 20,000 new social housing dwellings. $350m will be spent over 5 years in delivering 10,000 affordable dwellings, with state governments to provide another 10,000 homes. The government also committed to its pre-election promise of a shared equity scheme, allowing eligible people to buy a house with a smaller deposit.
Atop major infrastructure and construction companies that stand to benefit, Amir pointed to the ASX 200 banks. "Eyes will also be on banks that could benefit from housing policies, so CBA, ANZ Bank, NAB, as well as Westpac," among the other big financial institutions, she said.
