CBA, NAB, ANZ, WBC: How have these ASX banking stocks fared after budget?

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Highlights

  • The Federal Budget announced several economic measures for the common man.

  • The ‘Big Four’ largely supported the pre-election Budget.

  • But they still find no reason for the Australian central bank to start raising interest rates in the coming months.


The Budget 2022 announced a slew of economic measures which focused on cost-of-living support and tax offsets. It also sought to provide relief to the citizens by halving the fuel excise tax for six months. The real estate sector was also boosted by the deposit guarantee schemes which were extended to support first home buyers. The ‘Big Four’ banks largely supported the pre-election Budget. However, they still find no reason for the Australian central bank to start raising interest rates in the coming months.

On this note, let’s discuss how these ASX-listed banking shares have performed after the federal budget was presented on 29 March 2022:

Commonwealth Bank of Australia (ASX:CBA)

CBA described the budget as a pre-election budget with a focus on stabilising the debt accumulated while supporting the country during COVID-19. The ASX-listed bank also said that the cost-of-living payments could trigger near-term demand and inflation pressures. The bank believes that the Australian central bank would raise interest rates from June 2022.

CBA shares have traded flat since the Budget Day. The stock has surged over 4% on a year-to-date (YTD) basis.

National Australia Bank Ltd (ASX:NAB)

NAB said while the Budget’s focus was on cost-of-living measures, it’s unclear how these measures would be implemented ahead of election. NAB also said that its economic outlook matched that of the government. The bank believes that the Australian central bank would raise interest rates from August 2022.

NAB’s share price is up 1% since the Budget Day. The stock has surged over 10% on a YTD basis.

Australia and New Zealand Banking Group Ltd (ASX:ANZ)

ANZ described the Budget as “reasonable” but a little “conservative.” The bank said that COVID-19, European conflict, inflation cycle and upcoming election, all appear to have influenced the budget. ANZ expects the Reserve Bank of Australia (RBA) cash rate to reach 2% by the end of 2023.

ANZ shares have traded flat since the Budget Day. The stock has fallen over 2% on a YTD basis.

 


 


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