How is it possible that the ASX 200 bank shares are underperforming the S&P/ASX 200 Index (ASX: XJO) despite interest rates rising at their fastest pace on record?
Over the past 12 months, the ASX 200 has risen by 9.35%.
Here's what the ASX 200 bank shares have done over the same period:
- The ANZ Group Holdings Ltd (ASX: ANZ) share price has ascended 9%
- The Commonwealth Bank of Australia (ASX: CBA) share price has gained 7.7%
- The Westpac Banking Corp (ASX: WBC) share price has lifted 6.2%
- The Macquarie Group Ltd (ASX: MQG) share price has risen 5.1%
- The National Australia Bank Ltd (ASX: NAB) share price has tumbled 6.6%
- The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has declined 7%
- The Bank of Queensland Ltd (ASX: BOQ) share price has dropped 19.2%.
The Reserve Bank has raised interest rates 12 times since it began raising rates in May 2022. This has lifted the cash rate from 0.1% to 4.1% today.
But as we've previously covered, rising interest rates present pros and cons for the banks.
Although they're still making mega-bucks, some have recently argued that they're battling downward pressure on their net interest margins (NIMs) and continuing economic uncertainty.
Which bank will pay the best dividend in FY24?
Having said all that, when it comes to dividends, the banks have always been generous payers.
And when you buy the banks at depressed share prices, you end up with a better dividend yield.
On top of all that, every bank bar Macquarie pays dividends with full franking credits attached.
So, let's take a look at the very latest FY24 dividend forecasts for ASX 200 bank shares.
Latest dividend forecasts on ASX 200 bank shares
| ASX 200 bank share | FY24 forecast dividend yield | Broker |
| Bank of Queensland Ltd | 7.4% (42 cents per share) | Commsec |
| Westpac Banking Corp | 7.1% ($1.52 per share) | Morgans |
| ANZ Group Holdings Ltd | 6.7% ($1.62 per share) | Goldman |
| Bendigo and Adelaide Bank Ltd | 6.9% (61.2 cents per share) | Commsec |
| National Australia Bank Ltd | 6.2% ($1.66 per share) | Goldman |
| Commonwealth Bank of Australia | 4.3% ($4.35 per share) | Commsec |
| Macquarie Group Ltd | 3.7% ($6.69 per share) | Commsec |
To put all of this into a broader market context, most of these bank shares are among the best dividend payers of the entire ASX 200.
You'll find three of the major banks in our article covering the top 10 ASX 200 large-cap dividend-paying shares.
A junior bank is also listed in another article covering the top 10 ASX 200 mid-cap dividend-paying shares.
