Last year was a rough one for many S&P/ASX 200 Index (ASX: XJO) shares, and those of banking giants were no exception.
While rising interest rates potentially buoyed market sentiment for banks due to the potential for higher net interest margins (NIMs), most ASX 200 banks ultimately ended the year lower than they started.
Indeed, the home sector of ASX 200 banking shares, the S&P/ASX 200 Financials Index (ASX: XFJ), fell almost 3% over the 12 months ended 31 December 2022. Simultaneously, the ASX 200 tumbled around 5%.
But it wasn't all bad for ASX 200 bank shares. Here are three that defied the downturn to post the biggest share price gains out of their peers in 2022.
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2022's best performing ASX 200 bank shares
Taking out the gold is one many might overlook when hunting for ASX 200 bank shares.
The Challenger Ltd (ASX: CGF) share price gained 16.7% between its final close of 2021 – $6.53 – and the end of 2022, which saw it trading at $7.62.
The company operates three core businesses – an investment management division, an annuities business, and an APRA-regulated bank. However, it likely won't be a contender for 2023's top spot.
Challenger Bank is currently in the process of being acquired by Heartland Group Holdings Ltd (ASX: HGH).
Coming in second best is the Westpac Banking Corp (ASX: WBC) share price, having gained 9.4% over the 12 months to 31 December 2022.
After ending 2021 trading at $21.35, the Westpac share price rose to $23.35 as of the final close of 2022 – a 9.4% improvement.
Looking forward, Goldman Sachs is tipping further gains from the ASX 200 bank in the coming years.
Finally, the Suncorp Group Ltd (ASX: SUN) share price also outperformed most other ASX 200 bank operators in 2022.
The stock rose from $11.07 to $12.04 – or 8.8% – over the 12 months ended 31 December 2022.
However, like Challenger, the company's days operating a bank appear limited.
Suncorp Bank is being lined up to be acquired by ANZ Group Holdings Ltd (ASX: ANZ) in a near-$5 billion deal announced last year.
