ASX bank stocks are charging higher this week.
ANZ Group Holdings Ltd (ASX: ANZ) shares closed 8.47% higher on Thursday at $40.35. For the year the shares are 29.2% higher.
It was the same story for Commonwealth Bank of Australia (ASX: CBA). Its share price climbed 5.41% over the course of the day to close at $178.74 a piece on Thursday. The shares are now 7.69% higher over the year.
Westpac Banking Corporation (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) shares also climbed higher on Thursday. Westpac shares increased 1.81% to $41 and NAB shares increased 2.31% to $46.54. Over the year the shares are now 18.33 and 13.21% higher respectively.
It's a welcome recovery for the banking majors after overall banking sector weakness late last year caused share price declines across most of the sector. Somber sentiment means many investors were not expecting any type of recovery this year.
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Why are the ASX bank stocks climbing higher?
Banking majors ANZ and CBA reported strong-than-expected profits this week.
CBA posted its half-year results yesterday where it revealed a 6% increase in cash net profit to $5,445 million. The bank also lifted its interim dividend by 4% to $2.35 per share. CBA's CEO, Matt Comyn said that economic growth strengthened during the half, "driven by increases in consumer demand and rising investment in AI and energy infrastructure".
ANZ announced its latest quarterly update ahead of the ASX open this morning. The bank reported a first-quarter cash profit of $1.94 billion, which was up a whopping 75% on the second-half average of FY25.
ANZ's CEO, Nuno Matos, said:
The quarterly result highlights the early progress we are making in executing our ANZ 2030 strategy. Our productivity program aimed at removing duplication and simplifying the bank is well underway, delivering a significant reduction in expenses while growing revenue.
ANZ and CBA's strong financial results have pushed the S&P/ASX 200 Index (ASX: XJO) close to an all-time high. At the close of the ASX on Thursday, the index was 0.32% higher.
There was no price sensitive news out of NAB or Westpac yesterday, but it's likely that their share prices have been boosted by overall improved confidence in the banking sector following ANZ and CBA's impressive results.
Westpac is due to announce its first-quarter results today.
NAB will post its first-quarter trading update for FY26 on 18 February.
