ASX bank shares have sunk lower through the first few weeks of May, as investors become concerned about earnings growth, valuations and interest rate hikes.
Some softer-than-expected results, combined with proposed changes to negative gearing and capital tax concessions put pressure on major bank shares.
Here's a rundown of how each of the big four banking giants are faring today, and what brokers expect next.
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Hold ANZ Group Holdings Ltd (ASX: ANZ) shares
ANZ shares are down around 1% to $35.2 at the time of writing. The shares are now down 4% so far in May, down 3% for the year-to-date, but are 23% higher than the trading price this time 12 months ago.
The banking giant posted good news earlier this month though. In early May, ANZ reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank's operating expenses were 22% lower.
ANZ confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY 2026.
Brokers are relatively neutral on ANZ shares. TradingView data shows that out of 16 analysts, the majority (eight) have a hold rating on the stock. Another six have a buy or strong buy rating while two have a sell or strong sell rating.
The average $35.32 target price implies a potential 0.3% upside at the time of writing.
Sell Commonwealth Bank of Australia (ASX: CBA) shares
CBA shares are trading in the red in Wednesday lunchtime trade. At the time of writing, the ASX bank shares are relatively flat, trading at $162.31 at the time of writing.
Today's slump means the shares are now down 6.5% so far in May, and are 6% lower than their trading price this time last year.
The bank posted a disappointing third-quarter capital update last week, where it reported a flat operating income and a 1% decline in its unaudited cash NPAT. Investors were spooked by the results and rushed to sell up their shares, sending the share price tumbling.
CBA shares have been considered overvalued relative to its peers for some time now, and it looks like the downturn could finally be coming to fruition. But the shares haven't reached the bottom yet.
The majority (11 out of 16) of analysts have a strong sell rating on CBA shares. Another three rate the stock as a sell and two rate it as a hold. The average $127.57 target price implies more than 20% downside ahead, at the time of writing.
Hold National Australia Bank Ltd (ASX: NAB) shares
NAB shares are also in the red on Wednesday lunchtime, down around 1% to $36.76 at the time of writing. NAB has been the worst big four performer in May, down 8% already. For the year-to-date the shares are down 13% and they're just over 1% lower than this time last year.
The bank's latest half-year FY26 results were a miss versus market expectations, and investors reacted negatively. Despite posting a modest earnings growth earlier this month, including a 6.4% increase in underlying profit and a 3.1% increase in revenue, the share price sell-off accelerated.
It looks like analyst sentiment is finally shifting for NAB shares though.
The latest data shows nine out of 16 analysts now rate the ASX bank stock as a hold. Another five have a sell or strong sell rating. This is an improvement from late-April when the majority had a sell or strong sell rating.
The average $38.40 target price now implies a potential 5% upside, at the time of writing.
Sell Westpac Banking Corp (ASX: WBC) shares
Westpac shares have also come under pressure on Wednesday. At the time of writing the share price is down 1% to $35.96 a piece. They're now down 8% for the year-to-date but are still 14% higher than 12 months ago.
The bank posted its first-half results earlier this month. Westpac's statutory net profit was 3% higher year-on-year but 5% lower compared to the second half of FY25. Its total lending and deposit growth also climbed 7% year-on-year.
The result was solid, and it caused a brief share price uptick before investors reversed and the sell-off resumed.
Analysts are pretty pessimistic about the outlook for Westpac shares over the next year. The majority (nine out of 16) have a sell or strong sell rating on the bank shares. Another seven have a hold rating.
The average $34.04 target price implies around 5% downside at the time of writing.
