Australian shares edged lower on Monday, slipping back below the 9,000 level, as losses in heavyweight banks outweighed gains in mining stocks.

The S&P/ASX 200 index fell 0.3% to 8,997 by 0005 GMT, after closing 0.5% lower on Friday.

Financials were the biggest drag on the benchmark, falling 0.8%, with all of the "Big Four" banks down between 0.3% and 2.1%.

ANZ Group lost 2.1% despite reporting a 31% jump in annual cash profit. The lender's common equity tier 1 ratio, a key measure of capital strength, fell to 12% at the end of the fiscal year.

Citi analysts said in a note that underlying organic capital generation was flat for the lender, though they expect it to improve as profitability rises and credit growth slows into fiscal 2027.

Rate-sensitive real estate and consumer discretionary stocks fell 1.6% and 1.1%, respectively. Data-centre landlord Goodman Group declined 1.2%, while top non-food conglomerate Wesfarmers slipped 1.1%.

Resources stocks, which account for roughly a quarter of the benchmark, rose 1.9% as iron ore prices held firm. Sector heavyweights BHP Group and Rio Tinto gained 1.5% and 0.8%, respectively.

Among gold miners, Ramelius Resources advanced 1.2% and Genesis Minerals climbed 2.3%.

Energy stocks climbed 0.6% despite weaker crude oil prices, recovering some ground after a near 5% slide over the previous two sessions. Woodside Energy edged up 0.1% and Santos added 0.6%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index slipped 0.2% to 13,970.21 and was headed for a second straight day of losses.

The country faces weeks of political uncertainty after an election left the incumbent centre-right bloc with a razor-thin lead. - Reuters