Australian banks haven’t been this cheap compared to the benchmark index in more than 10 years. The lenders are trading at 13 times forward earnings compared with 18 times for the benchmark S&P/ASX 200 Index as they get the cold shoulder from investors amid rising capital needs, slowing profit growth and concerns of rising loan losses. The financial index is the worst performer this year of the 10 sector groups that make up the benchmark, having declined 3.2 percent.

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