PERTH - The Australian share market closed firmly in the red after bank stocks led a broad sell-off.

The benchmark S&P/ASX200 index was down 68.4 points, or 1.44 per cent, at 4685.1 points, while the broader All Ordinaries index had lost 67.6 points, or 1.42 per cent, to 4687.3 points.

On the Sydney Futures Exchange at 1618 AEDT, the December share price index contract was 78 points lower at 4686 on a volume of 35,865 contracts.

CMC Markets analyst David Taylor said the market weakened during the session, with falls by the big four banks accounting for most of the losses.

National Australia Bank on Wednesday posted a 42.9 per cent fall annual profit after bad debt charges dented its bottom line, sending its shares 87 cents, or 2.83 per cent, lower to $29.83.

"The NAB result was broadly in line with expectations," Mr Taylor said.

Commonwealth Bank backtracked $2.12, or 3.84 per cent, to $53.03, Westpac gave up 53 cents, or 1.95 per cent, to $26.70 and ANZ was down 40 cents, or 1.68 per cent, at $23.35.

"The underlying trend of the day ... remained this increased risk aversion were seeing in the market," Mr Taylor said.

"There was definitely some rotation out of cyclical stocks today and into some defensive plays like Telstra, Foster's, Woolies and CSL.

"In fact, the healthcare sector was by far the best performer of the day."

Telstra was up five cents at $3.29 after reaffirming its full year financial guidance of low single-digit revenue growth.

Foster's inched two cents higher to $5.52, Woolworths was seven cents stronger at $28.82 and CSL had risen 12 cents to $31.46.

BHP Billiton was down 45 cents at $38.40 while fellow mining giant Rio Tinto eased 92 cents to $64.10.

Making headlines on Wednesday, Consolidated Media Holdings executive chairman John Alexander said the company was in a strong position with no debt and a stake in two of Australia's best media assets, Foxtel and Premier Media Group.

Consolidated Media inched one cent higher to $3.03.

Suncorp-Metway's new chief executive Patrick Snowball says the financial group's banking arm is core to its business, telling potential predators to "get your tanks off our lawn."

Suncorp-Metway was down 37 cents at $8.88.

Energy stocks were mixed. Oil Search was 10 cents lower at $5.93 after announcing the Papua New Guinea government had approved the environmental impact statement for the PNG liquefied natural gas project. Its joint venture partner in the project, Santos, rose five cents to $15.32.