Quarterly Newsletter – Who Will Get Left Holding The Banks

Welcome to Auscap’s January 2026 Newsletter titled Who Will Get Left Holding The Banks

The major banks have been the mainstay of the domestic investment landscape in Australia for over 100 years. While credit cycles have come and gone, as the country has prospered and the population has grown, the banks have been a major beneficiary. Currently Australia’s top five companies by market capitalisation are the four major retail banks and BHP. The prominence of the banks is a phenomenon that has long been the case. ANZ, Commonwealth Bank, National Australia Bank and Westpac constitute 22.6% of the ASX200. The question is, should
investors be this invested in the sector? Or, for the first time in a very long time, is there a competitive threat for the banks’ profits and business model emerging that the market might be underestimating?

In this newsletter we also detail the performance and portfolio positioning of the Auscap Funds in December 2025.

Learnings Outcomes: After reading this newsletter, readers will understand how structural shifts in Australian banking—particularly the rise of mortgage brokers and Macquarie’s competitive strategy—are challenging the long‑standing dominance and profitability of the major banks. Readers will gain insight into the implications of these changes for bank margins, market share, and valuations.

This activity meets the guidelines for qualifying CPD, and has been accredited for continuing professional development by the Financial Advice Association of Australia but does not constitute FAA’s endorsement of the activity. 0.5hr CPD is available for this activity.