ASX 200 bank shares led a financial sector rebound last week

The S&P/ASX 200 Index dropped 3% to a 10-week low. NextDC (ASX: NXT) fell 6.22% to $12.06, with a buy rating from Shaw and Partners citing strong demand for data centers. South32 (ASX: S32) declined 3.82% to $5.02, with a hold rating from RaaS Group due to commodity price outlooks. CBA (ASX: CBA) fell 3.88% to $154.19, with a sell rating from Shaw and Partners citing high valuations and modest earnings growth.

Fitch revised the outlook on New Zealand's big four banks (ANZ NZ, BNZ, Westpac NZ, ASB) to positive, citing expected Reserve Bank capital rules that will allow issuance of loss-absorbing capacity (LAC) instruments to Australian parents. This is expected to bolster the banks' positions within their parent groups. ASB's AA- rating is higher due to its parent, Commonwealth Bank of Australia's, AA rating. The Reserve Bank plans to consult on LAC requirements next year, with implementation from late

Commonwealth Bank of Australia (CBA) shares fell 9.93% in August despite reporting a record annual profit of A$10.98 billion. The decline was driven by valuation concerns, regulatory changes, and rising loan arrears. Analysts have a 'Strong Sell' consensus with an average price target of A$125.21, suggesting further downside.

Commonwealth Bank (CBA), Colonial First State, and Avanteos settled a $249m class action over alleged low interest rates on investments from 2008-2021. The settlement, pending court approval, may benefit over 500,000 Australians. The companies deny wrongdoing and had budgeted for the payout.

National Australia Bank (ASX:NAB) reported Q3 2026 net income of A$1.8 billion, with net interest income of A$4.6 billion. The results provide insight into the bank's core lending profitability and growth prospects. Analysts have mixed views on its future earnings and risk profile, with some projecting A$8.2 billion in earnings by 2029, while others are more cautious.

The S&P/ASX 200 fell 0.78% to 9,056.2, driven by CBA's forecast of a November rate hike due to high inflation and Qantas' profit decline on rising fuel costs. CBA expects the RBA to raise rates once more this year, while Qantas reported a $330 million drop in profit before tax, with revenue up 3.4% to $47.27 billion. The ASX 200 remains below its February 2026 high of 9,198.6.