After a stellar run for most of the year, the big four banks have been a major drag on the ASX over the last few months.
Dividend cuts from National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) as well as franking credit cuts from Australia and New Zealand Banking Group (ASX: ANZ) were the first thing to take the shine off. But with the criminal allegations against Westpac that came out last month, the banks' stars have well and truly fallen.
In fact, both Westpac and ANZ are trading at their lowest levels in a year, with NAB not far off either.
The glowing exception has of course been the Commonwealth Bank of Australia (ASX: CBA).
CBA shares are still up nearly 12% for the year, and another 6% gain would put CBA at a 52-week high. For comparison's sake, Westpac would need a 25% boost to hit its own 52-week high watermark.
Commonwealth Bank has been the only ASX bank to keep its shareholder payments steady this year with no dividend cuts or franking reductions in sight.
Unlike Westpac, CommBank is also not expected to have to raise capital anytime soon – a claim that I'd wager NAB can't make with the same conviction.
Is CBA a buy today?
I'm not bullish on the near-term prospects for our ASX banks. Record low interest rates and sluggish wage growth are damaging the banks' profitability and I don't see this easing anytime soon. However, if I had to choose a 'big four' bank to buy today, it would probably be CBA. I think the bank's current dividend yield of 5.44% is very attractive from an income perspective, especially if you include full franking for a grossed-up yield of 7.77%.
Even if CommBank is forced to cut its dividend in 2020 (which is still a distinct possibility), it's likely CBA shares will still offer a market-beating yield.
Foolish takeaway
If you're looking for more exposure to the ASX banking sector, then I think CommBank remains the best bet going into 2020. I don't see much upside in the CBA share price going forward though.
