Top 6 ASX Bank Shares to Watch in 2026: CBA, Westpac, NAB and More
Australian bank shares are one of the oldest and most popular financial instruments among investors looking for dividend income, established businesses and exposure to the domestic economy. The Big Four banks dominate the sector, but top financial groups like Macquarie and smaller lenders like Bendigo and Adelaide Bank offer different ways to participate in the financial services industry.
This guide compares six ASX-listed bank and financial services companies in 2026, especially at a time when mortgage demand, interest rates, competition and the housing market are important factors influencing the banking sector.
Why Watch Australian Bank Shares in 2026?
Banks are among the most successful enterprises in Australia and beyond. However, besides their earnings and success stories, investors back them for the following reasons:
Dividends: Established banks have a track record of paying dividends to their investors. In most cases, the amount is determined by the institution’s profits, capital requirements and board decisions. Some Australian dividend stocks may also come with franking credits, which can affect an eligible shareholder's after-tax return.
Exposure to the Australian economy: Banks can benefit from almost every citizen, especially when households and businesses borrow, spend, and invest increasingly.
Established customer bases: Major banks have extensive branch, digital banking, and lending operations. Their scale is usually an advantage, as expansion often comes with significant business growth and stronger customer acquisition.
How to Invest in Australian Bank Shares
Australian investors have multiple options to gain exposure to bank shares:
1. Trade Bank Share CFDs with Mitrade
Investors who don’t want to hold individual bank stocks can speculate on their price movements using contracts for difference (CFDs). Mitrade is one of Australia’s most reputable CFD trading platforms, with access to share CFDs and other markets.
With a share CFD, traders can speculate on whether a company's share price will rise or fall without owning the actual shares. Depending on the instrument and trading conditions, they may be able to go long when they expect prices to rise or short when they expect prices to fall.
Mitrade also provides a demo trading account for users who want to familiarise themselves with the platform before considering live trading.
To buy and sell bank shares on Mitrade, follow the steps below:
Open an account: Visit the Mitrade website and register a free account.
Complete verification: Provide the information and identity documents required to activate a live account.
Review the trading conditions: Search for your preferred bank shares and check the quoted prices, spread, leverage, margin requirements and overnight financing terms.
Practise if needed: Use the Mitrade demo trading account to learn how the platform works before committing real funds.
Plan your trade: Consider your entry price, position size, risk management strategy, and exit conditions and then place an order.
2. Buy Bank Shares Directly
A brokerage account that provides access to the Australian Securities Exchange (ASX) allows investors to buy listed shares such as CBA, WBC, NAB, ANZ, MQG and BEN without hassles.
To get started, open and verify your brokerage account, deposit funds, search for the ticker and place an order. With this model, you become a direct shareholder who may be entitled to dividends and voting rights.
3. Consider ETFs for Broader Exposure
Investors who prefer diversification can consider exchange-traded funds (ETFs) tracking a broad Australian sharemarket or financial sector index. An ETF spreads exposure across multiple holdings, allowing you to balance price increases and declines across the basket.
“Trade Bank Shares with an ASIC-regulated broker. Fast AUD funding via PayID. ”
Best Australian Bank Shares to Buy in 2026
1. Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank of Australia (CBA) is one of Australia's largest listed companies and a major provider of home loans, business lending, transaction accounts, savings products and payments services.
CBA's scale gives it a substantial presence across Australian banking. Its earnings can benefit from growth in lending and deposits, effective management of funding costs, and continued demand for its digital banking services.
It’s therefore no surprise that CBA reported strong FY2026 results, with cash net profit after tax rising 7% to A$11 billion and operating income increasing 6%. These figures are indicators of a good starting point. However, you should still monitor whether CBA can maintain earnings growth while managing competition for home loans and deposits.
2. Westpac Banking Corporation (ASX: WBC)
Westpac is one of Australia's oldest banks and a member of the Big Four. It provides consumer and business banking services, including home loans, deposits, credit cards and lending to commercial customers.
Westpac is worth watching because its performance depends on attracting and retaining customers, managing costs and maintaining lending quality. For investors comparing the Big Four, Westpac can be compared with CBA, NAB and ANZ on profitability, capital strength, dividend payments and valuation rather than brand recognition alone.
However, the company faces intense competition in mortgages and deposits. If it reduces lending rates to win customers while paying more to attract deposits, the gap between interest earned and interest paid may narrow.
It is also exposed to Australia's housing market and the financial health of households and businesses. Higher arrears or loan losses could require it to set aside more money to cover potential defaults.
3. National Australia Bank (ASX: NAB)
National Australia Bank (NAB) has a strong presence in business banking, alongside consumer lending, home loans, deposits and other financial services. Its business lending operations make it a useful comparison with banks that have greater emphasis on retail customers.
Moreover, NAB has identified growing business banking, driving deposit growth and strengthening its proprietary home lending as key priorities.
Still, business banking comes with risks. Companies may struggle when economic conditions weaken, operating costs rise, or demand for their products falls. NAB could face higher credit losses if more business customers encounter financial difficulties.
4. ANZ Group Holdings (ASX: ANZ)
ANZ is another member of Australia's Big Four banks. It operates across retail and business banking, institutional banking and New Zealand, with its institutional business serving corporate, financial institution and government customers.
The bank gives investors areas to monitor, including operational simplification, customer growth, cost management and shareholder returns.
However, ANZ faces the same broad pressures as other major lenders. These include competition for mortgages and deposits, changing funding costs, economic uncertainty and potential loan losses.
5. Macquarie Group (ASX: MQG)
Macquarie Group is different from the Big Four. Although it is a major Australian financial services company, it is not simply a traditional retail bank. Its operations span asset management, commodities and global markets, and other financial services and investment activities.
The company’s diversified operations may create opportunities when markets are active, clients need financing or investment expertise, and its managed assets or other businesses perform well.
Macquarie's earnings mix can make its performance less straightforward to assess than that of a conventional retail bank. Some business areas are sensitive to market conditions, investment outcomes, transaction activity and changes in asset values.
Strong performance in one year may also reflect transactions or conditions that are difficult to repeat. Investors should look at results across several periods and distinguish recurring earnings from significant one-off contributions. Earnings across business divisions, assets under management, market conditions, capital allocation, return on equity and the sustainability of dividends.
6. Bendigo and Adelaide Bank (ASX: BEN)
Bendigo and Adelaide Bank is smaller than the Big Four and has a strong association with community banking. It provides personal and business banking services, including home lending, deposits and financial products through its banking network and digital channels.
The company’s community banking heritage and customer relationships may help it differentiate itself, but it must still manage costs and compete with larger lenders.
However, Bendigo faces many of the same credit and funding risks as larger banks, and scale can matter when competing on technology investment, marketing and pricing. For instance, a smaller lender may also be more exposed to particular customer segments or regional economic conditions.
“Trade Bank Shares with an ASIC-regulated broker. Fast AUD funding via PayID. ”
How to Compare ASX Bank Shares
Choosing between bank shares involves more than comparing their share prices or dividend yields. The following measures can help investors understand how the businesses are performing.
Beyond the metrics, a high dividend yield can reflect a falling share price or expectations of weaker profits, while a lower yield may reflect a higher valuation. Compare several reporting periods and distinguish recurring earnings from one-off items.
Final Thoughts
The six ASX banking companies offer different kinds of exposure. CBA and Westpac have substantial retail and mortgage businesses, NAB has a strong business-banking presence, ANZ combines domestic and institutional operations, Macquarie is more diversified, and Bendigo and Adelaide Bank are smaller lenders.
In 2026, investors should look beyond familiar names and headline dividends. Compare earnings, margins, credit quality, capital strength, strategy and valuation. A profitable bank can still be a poor investment if its share price already assumes too much growth.
Enjoy simple and fast trading Flexible leverage options available Follow real-time trading strategies Demo account with $50,000 virtual funds
You might be interested in…
1. What are the Big Four banks listed on the ASX?
The Big Four are Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC), National Australia Bank (NAB) and ANZ Group Holdings (ANZ). They are among Australia's largest banking groups and have significant exposure to Australian households and businesses, making them top choices for Australian investors in the financial sector.
2. Are Australian bank shares good for dividends?
It depends on the bank stock. Some Australian banks have historically paid dividends, and eligible investors may receive franking credits. However, dividends can change and are not guaranteed. Review the bank's earnings, capital position, payout ratio and outlook rather than choosing a share based on dividend yield alone.
3. Can I invest in Australian bank shares with CFDs?
Yes. You can buy and sell ASX-listed bank shares directly through a broker that offers CFD or derivatives trading. Mitrade is a top choice among Australian investors, simplifying access and exposure to bank stocks. Ultimately, direct shares represent ownership in the company, while CFDs provide exposure to an asset’s price movements.
Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.
