Australian banks tumble 2% as tariff-led rout dents frothy valuations

Bendigo and Adelaide Bank

03/02/2025 24:30

** Australian banking sub-index  .AXFJ  falls 2% to
8,959.60, its lowest level since Jan. 21
    ** AXFJ slips from a record high scaled in the previous
session
    ** Sub-index among the worst performers, dragging the ASX
200 benchmark index  .AXJO  down 1.9%
    ** Losses in-line with benchmark's decline, as U.S. tariffs
on Canada, Mexico, and China raise concerns of a full-blown
trade war, triggering a sell-off in richly valued Australian
banks
    ** "Big Four" banks decline between 1.7% and 2.5%
    ** Commonwealth Bank of Australia  CBA.AX , the biggest
lender in the country, falls 2.2%
    ** National Australia Bank  NAB.AX , the country's biggest
business lender, stumbled 2.5% in its worst intraday drop since
mid-January
    ** Regional lenders Bank of Queensland  BOQ.AX  and Bendigo
and Adelaide Bank  BEN.AX  fall 3.3% and 2.6%, respectively
    ** AXFJ index up 6% this year, including the day's moves,
ahead of 4.6% gains in the broader benchmark  .AXJO  

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com;))