How did the big 4 ASX 200 bank stocks stack up in September?

Investors favoured two of the big four ASX 200 bank stocks in September.

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Key points
  • The ASX 200 Index fell by 1.4% in September, with the Commonwealth Bank of Australia leading the declines among the big four banks.
  • ANZ experienced setbacks due to corporate restructuring announcements and penalties from regulatory investigations, while Westpac and NAB showed positive share price growth.
  • Analysts highlighted concerns over CBA's overvaluation despite receiving a final dividend, while NAB reached a new closing high in September.

The S&P/ASX 200 Index (ASX: XJO) slipped 1.4% in September, with a mixed performance from the big four ASX 200 bank stocks.

Commonwealth Bank of Australia (ASX: CBA) was the weakest performer. CBA shares closed out August trading for $170.30 and ended September trading for $166.90 each. This put the CBA share price down 2.0% over the month just past, trailing the ASX 200.

ANZ Group Holdings Ltd (ASX: ANZ) also lost ground. ANZ shares finished August at $33.67 each and closed out September trading for $33.21 apiece. This put the ANZ share price down 1.4% over the month, in line with the losses of the benchmark index.

Westpac Banking Corp (ASX: WBC) shares managed to buck the losing trend. Shares in the ASX 200 bank stock closed at $38.61 on 29 August and closed at $38.97 on 30 September. That saw the ANZ share price up 0.9% over the month.

And National Australia Bank Ltd (ASX: NAB) shares led the charge among the big four ASX 200 bank stocks. NAB shares closed out August at $42.79 and ended September trading for $44.15 each. This saw NAB shares up 3.2% for the month.

Bank building with the word bank in gold.

Image source: Getty Images

What happened with ASX 200 bank stocks in September?

While there was no price-sensitive news out from CBA, Australia's biggest bank continues to be targeted by analysts citing concerns over its relative overvaluation.

That includes Morgans' Damien Nguyen. Early in September, Nguyen said:

The CBA remains Australia's most profitable bank, with a sector-leading return on equity and a dominant position in mortgages and deposits. However, in our view, its share price has surged well beyond fundamentals, trading at a significant premium to peers…

While CBA's quality is undisputed, we believe the risk-reward profile at current levels is unfavourable.

Eligible investors will also have received the final fully franked CBA dividend of $2.60 a share on 29 September. As the ASX 200 bank stock traded ex-dividend on 20 August, that won't have had an impact on CBA's September share price performance.

There was also no new price-sensitive news out from either Westpac or NAB in September.

Notably, however, NAB shares closed at a new all-time high of $44.29 on 29 September. (Shares have since surpassed that in October.)

What about ANZ shares?

There were two price-sensitive announcements out from ANZ last month.

On 9 September, shares in the ASX 200 bank stock closed down 0.2% after the company announced the pending dismissal of some 3,500 employees as part of its restructuring program.

ANZ shares slipped another 0.5% on 15 September, after the bank reported it had reached an agreement with the Australian Securities and Investments Commission (ASIC) to resolve five different investigations.

ANZ said it will pay a total of $240 million in penalties to settle the issues.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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