The S&P/ASX 200 Index (ASX: XJO) gained 3.6% in April, with all of the big four ASX 200 bank stocks finishing the month in the green.
In fact, from the 31 March market close through to the closing bell on 30 April, three of the big Aussie banks beat the benchmark's returns.
Here's how they performed over the month just past:
- Commonwealth Bank of Australia (ASX: CBA) shares gained 10.4%
- ANZ Group Holdings Ltd (ASX: ANZ) shares gained 2.7%
- National Australia Bank Ltd (ASX: NAB) shares gained 6.2%
- Westpac Banking Corp (ASX: WBC) shares gained 4.0%
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What lifted ASX 200 bank stocks in April?
ANZ was the only one of the ASX 200 bank stocks to release price-sensitive news in April, which helps explain the bank's underperformance relative to its peers. We'll have a look at that below.
But first, why did the banks, and CBA shares in particular, have such a strong run this past month?
Well, the answer looks to be that both retail and institutional investors alike seek the big Aussie banks as relatively safe investments as US President Donald Trump's tariffs roil global markets.
Since they represent some of the biggest stocks on the ASX, the banks also enjoy strong buying from Australian superannuation funds.
Turning to CBA's massive 10.4% monthly gain and record-high share price in April, as Australia's biggest bank, it may also be perceived as the most stable. High valuations and all.
Why did ANZ shares trail the pack in April?
ANZ's relative underperformance may be linked to the bank's announcement on April 3 that it had entered into a court-enforceable undertaking with the Australian Prudential Regulation Authority.
The legal matter relates to historic issues with the ASX 200 bank stock's non-financial risk management practices and culture.
As part of that undertaking, ANZ said it would have to hold an extra $250 million in operational risk capital overlay.
Commenting on the outcome on the day, ANZ CEO Shayne Elliott said:
While the bank remains in a strong financial position with strong capital and liquidity levels, we know we have more work to do in the coming two to three years to boost our uplift of non-financial risk practices.
What now for the ASX 200 bank stocks?
While April didn't offer much insight into the latest financial performance of the ASX 200 bank stocks, May is shaping up quite differently.
All four of the big four Aussie banks will release updates in May, with investors likely to keep a close eye on revenue trajectories and any net interest margin moves.
Here are the dates to mark in your planner:
- Westpac reports half-year results on 5 May
- NAB reports half-year results on 7 May
- ANZ reports half-year results on 8 May
- CBA releases a quarterly update on 14 May
