Corrected: BUZZ-Jefferies says consumer sector driving profit for Aussie banks, but returns diverge

Westpac Banking

08/09/2026 22:28

Corrects headline and first bullet to say consumer segment accounts for largest share of sector profit, not drives divergence, fixes typo in bank name in second bullet, removes extraneous text in fifth bullet, corrects instrument code for sub-index and YTD figure to 0.8%, not 20%, in last bullet
     ** Jefferies says although major Australian bank returns look similar at the group level, consumer accounts for the largest share of sector profit and exhibits the widest dispersion in returns. 
** For National Australia Bank NAB.AX, shareholder value comes from improved divisional performance and reallocation of capital, among others - brokerage
** Jefferies prefers NAB for its business franchise, the sector's largest exposure with lowest risk intensity, making it the most capital-efficient lender in the division 
** Commonwealth Bank of Australia's CBA.AX outperformance is largely a consumer story, boosted by the division's outsized share of allocated capital, which Jefferies sees as sustainable, though not to the degree valuation implies
** ANZ's ANZ.AX lower returns largely stem from the sector's lowest revenue-generating division, Institutional
** Westpac's WBC.AX challenges differ between divisions, with consumer revenue and non-Consumer costs pointing to separate issues, supporting its Unite program
** The sub-index .AXFJ has lost 0.8% YTD, as of last close

 (Reporting by Anjali Singh in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))