The S&P/ASX 200 was trading lower at midday Monday, down 39.9 points, or 0.43%, to 9,223.7 as of 2:30 p.m. AEST, as a sharp selloff across the major banks weighed on the broader index even as mining, healthcare, gold and technology stocks posted solid gains.

Monday's dip follows a strong run for Australian equities, with the benchmark index closing at 9,263.60 on Friday and posting a second consecutive weekly gain of 3.2%, according to CNBC. The index had touched fresh record highs twice during the previous week before easing 0.1% on Friday as traders locked in profits, according to Trading Economics.

Westpac drags the big four banks lower

The steepest declines Monday came from the financial sector, led by a soft third-quarter earnings update from Westpac. According to Market Index, the bank's results showed a stable net interest margin of 1.89%, with core margin up 1 basis point to 1.78%, while lending grew 2% across business, institutional and housing segments and deposits rose 2%. Despite those modestly positive underlying figures, Westpac's stock fell sharply following the update, and the disappointment spread across the sector.

The broader pullback in bank shares pushed the big four collectively down between 1% and 4.6% during Friday's session, according to Trading Economics, with weakness continuing into Monday's trade. Insurers also weighed on the market late last week, with QBE, Insurance Australia Group and AUB Group all posting........

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