S&P/ASX 200 Financials Lead Market Gains in FY25 as CBA Tops the Charts

2 min read | July 22, 2025 04:26 PM AEST | By Team Kalkine Media

S&P/ASX 200 Financials Lead Market Gains in FY25 as CBA Tops the Charts — Image source: Shutterstock

Financials Surge Ahead

In FY25, the S&P/ASX 200 Financials Index (ASX:XFJ) jumped 24.45%, translating to a total return of 29.39% when dividends were included. This far exceeded the benchmark S&P/ASX 200 Index (ASX:XJO), which recorded a more modest price rise of 9.97% and a total return of 13.81%. The financials' outperformance highlighted robust investor confidence in the sector, driven by solid earnings and capital returns.

Among the standout performers, Commonwealth Bank of Australia (ASX:CBA) led the charge, finishing the financial year up 45% to close at $185 per share on 30 June. Just before that, it touched a record share price of $192, underlining the stock's significant upward run. CBA, a mainstay of the ASX 200, is the largest company in the financial sector by market capitalisation, valued near $298 billion as of the end of June.

CBA’s Momentum and Recent Performance

The strong performance by Commonwealth Bank was supported by a rise in cash net profit after tax, with unaudited results for the third quarter of FY25 showing a 6% increase year-on-year. This reflected ongoing stability in the bank’s earnings, supported by prudent cost management and solid loan growth. However, after peaking in late June, the CBA share price has recently moderated to around $174.45.

This cooling off may signal a broader trend among some financials that saw aggressive growth in FY25. As markets reassess valuation levels and upcoming earnings outlooks, some of the high-performing stocks could see more moderate activity ahead.

Sector Outlook

While the financials have delivered above-average gains, the focus now shifts to sustainability. Investors and analysts are likely to pay close attention to future earnings releases, credit conditions, and potential changes in interest rate cycles. For companies like CBA, maintaining capital efficiency and shareholder returns will be critical factors in navigating the post-FY25 environment.

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