Want to see AU:CBA full AI Analyst Report?
Top Page
Commonwealth Bank of Australia
(Sydney:CBA)
Select Model
Select Model
Rating:73Outperform
Price Target:
AU$198.00
▲(13.77% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid overall financial performance (strong income statement offset by leverage and cash-flow challenges) and a constructive earnings call highlighting strong capital, liquidity, growth execution, and dividend continuity. Technicals are supportive with clear uptrend momentum, while valuation is the main constraint due to a high P/E despite a moderate dividend yield.
Positive Factors
Capital Strength
A CET1 ratio of 12.3% with roughly A$10bn of buffer provides a durable capital cushion that supports dividend continuity, enables disciplined above-system lending and investment, and reduces the likelihood of near-term regulatory capital intervention, preserving strategic optionality.
Negative Factors
High Leverage
A high debt-to-equity profile increases sensitivity to funding and interest-rate volatility and reduces balance-sheet flexibility. Over the medium term this leverage can amplify earnings volatility, constrain capital actions in downturns, and raise the cost of managing credit or liquidity stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital Strength
A CET1 ratio of 12.3% with roughly A$10bn of buffer provides a durable capital cushion that supports dividend continuity, enables disciplined above-system lending and investment, and reduces the likelihood of near-term regulatory capital intervention, preserving strategic optionality.
Read all positive factors
Commonwealth Bank of Australia (CBA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$296.79B
Dividend Yield2.75%
Average Volume (3M)1.73M
Price to Earnings (P/E)28.7
Beta (1Y)0.86
Revenue Growth0.93%
EPS Growth5.97%
CountryAU
Employees51,617
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)6.19
Shares Outstanding1,673,462,400
10 Day Avg. Volume1,634,047
30 Day Avg. Volume1,734,722
Financial Highlights & Ratios
PEG Ratio18.17
Price to Book (P/B)3.92
Price to Sales (P/S)4.43
P/FCF Ratio-125.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$122.48Price Target Upside-29.62% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering7
EPS Forecast (FY)6.72
Revenue Forecast (FY)AU$31.45B
Commonwealth Bank of Australia Business Overview & Revenue Model
Company Description
Commonwealth Bank of Australia provides retail and commercial banking services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segmen...
How the Company Makes Money
CBA primarily makes money by earning interest income and fees from providing banking and financial services. The largest driver is net interest income: the bank takes deposits and other funding (such as wholesale funding), and lends those funds to...
Commonwealth Bank of Australia Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance: double-digit and high single-digit growth across core segments, robust deposit and lending inflows, solid capital and liquidity metrics, continued investment payoffs (digital, AI, productivity) and a higher dividend. Offsetting risks include elevated competitive intensity driving deposit pricing and some NIM mix pressure, rising operating and vendor costs, headcount growth despite automation, and macro/geopolitical downside risks. On balance, the positives — including profitable above-system growth, healthy provisioning buffer, strong capital, and execution on strategic investments — materially outweigh the headwinds.Positive Updates
Profit Growth and EPS
Cash net profit increased 6% year-on-year; statutory and cash profits for continuing operations were around $5.4 billion for the half; earnings per share increased by $0.19.
Negative Updates
Elevated Competitive Intensity
Management highlighted materially elevated competition across deposit and lending markets, including fast proprietary deposit share growth by competitors; deposit pricing competition is creating margin headwinds and ongoing intensity in business lending markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Profit Growth and EPS
Cash net profit increased 6% year-on-year; statutory and cash profits for continuing operations were around $5.4 billion for the half; earnings per share increased by $0.19.
Read all positive updates
Company Guidance
Management’s guidance was cautious but constructive: assume an FY26 effective tax rate of ~30%, expect the replicating portfolio to continue to support NII for around 2–3 more halves, and the economics team models system credit growth of c.6–8% over the next couple of years; balance‑sheet settings remain conservative with CET1 12.3% (~A$10bn above minimum), a 79% customer deposit funding ratio, A$199bn of liquid assets, a 5.2‑year weighted average long‑term funding maturity and customer deposits growing at an annualised 10% over the last six months (A$44bn inflow this half). Management reiterated a commitment to dividend continuity (interim DPS A$2.35, +A$0.10; headline payout 72%, normalized ~74%; DRP neutralised for the 11th period; A$4.4bn paid this half), while retaining A$6.3bn of provisions (A$2.8bn above the central scenario) and A$319m of loan impairment expense in the half, and pursuing disciplined, deposit‑led lending growth (mortgages +A$45bn/7% y/y to A$622bn; business lending +12% and 1.3x system) with operating income +6.6% and cash profit ~+6% to fund continued technology/AI investment amid a higher‑rate backdrop (RBA cash rate 3.85%).Commonwealth Bank of Australia Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.73B | 69.74B | 65.53B | 48.56B | 28.11B | 29.37B |
| Gross Profit | 29.65B | 28.66B | 27.31B | 27.14B | 23.29B | 23.55B |
| EBITDA | 15.34B | 15.95B | 15.28B | 15.42B | 15.17B | 13.76B |
| Net Income | 10.35B | 10.12B | 9.39B | 10.00B | 10.69B | 10.18B |
Balance Sheet | ||||||
| Total Assets | 1.41T | 1.35T | 1.25T | 1.25T | 1.22T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 89.91B | 55.50B | 48.11B | 108.01B | 120.31B | 88.52B |
| Total Debt | 207.44B | 216.23B | 186.69B | 161.55B | 151.60B | 140.76B |
| Total Liabilities | 1.33T | 1.28T | 1.18T | 1.18T | 1.14T | 1.01T |
| Stockholders Equity | 77.23B | 78.78B | 73.09B | 71.63B | 72.83B | 78.68B |
Cash Flow | ||||||
| Free Cash Flow | -47.85B | -2.46B | 8.51B | 6.78B | 20.68B | 12.54B |
| Operating Cash Flow | 23.26B | -825.00M | 8.91B | 8.35B | 21.66B | 13.30B |
| Investing Cash Flow | -76.48B | -329.00M | -1.11B | -15.74B | -96.76B | -38.79B |
| Financing Cash Flow | 62.34B | 7.59B | -10.71B | -5.62B | 106.72B | 85.98B |
Commonwealth Bank of Australia Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$112.41B | 18.84 | 8.30% | 4.55% | -5.34% | -13.04% | |
73 Outperform | AU$296.79B | 28.68 | 13.27% | 2.81% | 0.93% | 5.97% | |
73 Outperform | AU$20.34B | 21.09 | 9.55% | 3.58% | 6.10% | -29.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$93.14B | 19.80 | 13.72% | 2.74% | 4.80% | 30.56% | |
63 Neutral | AU$128.49B | 20.67 | 9.88% | 4.21% | -8.10% | -10.70% | |
54 Neutral | AU$129.36B | 18.47 | 9.77% | 4.15% | -3.87% | 1.20% |
* Financial Sector Average
AU:CBA
Commonwealth Bank of Australia
178.23
5.12
2.96%
AU:ANZ
ANZ Group Holdings
38.01
8.40
28.35%
AU:MQG
Macquarie Group Limited
267.09
59.26
28.51%
AU:NAB
National Australia Bank Limited
42.53
5.28
14.18%
AU:SUN
Suncorp Group
19.42
-0.86
-4.26%
AU:WBC
Westpac Banking
38.53
5.84
17.88%
Commonwealth Bank of Australia Corporate Events
CBA Ceases to Be Substantial Holder in Australian Finance Group
Aug 4, 2026
Commonwealth Bank of Australia has disclosed that it has ceased to be a substantial holder in Australian Finance Group Ltd, indicating its relevant interest in the company’s voting securities has fallen below the regulatory threshold. This c...
Commonwealth Bank exits substantial holding in Steadfast Group
Jul 28, 2026
Commonwealth Bank of Australia and its related entities have disclosed that they have ceased to be a substantial shareholder in Steadfast Group Ltd, an Australian-listed company, as of 27 July 2026. This follows a previous substantial holding noti...
CBA Withdraws as Substantial Holder in Australian Finance Group
Jul 10, 2026
Commonwealth Bank of Australia has notified Australian Finance Group Ltd that it has ceased to be a substantial holder in the company as of 9 July 2026. The change reflects adjustments in CBA’s relevant interests and associated voting rights...
CBA Splits Top Tech Role With CIO and CTO Appointments to Accelerate Digital Agenda
Jun 18, 2026
Commonwealth Bank of Australia has restructured its top technology leadership, appointing Victoria Ledda as Group Chief Information Officer and Rodrigo Castillo as Group Chief Technology Officer from 1 July 2026, subject to regulatory approvals. T...
CBA issues JPY 25.6bn subordinated notes with potential equity conversion
Jun 18, 2026
Commonwealth Bank of Australia has issued JPY 25.6 billion in subordinated fixed reset notes due June 2036 under its US$70 billion Euro Medium Term Note Programme, with the securities structured to convert into ordinary shares if a non-viability t...
Commonwealth Bank Sets September Quarterly Distribution on CBAPM Capital Notes
Jun 16, 2026
Commonwealth Bank of Australia has announced a new quarterly distribution on its ASX-listed capital notes series CBAPM, which are perpetual, non-cumulative, floating rate instruments paying a margin of 3.00% over the bank bill swap rate. The distr...
Commonwealth Bank Sets September 2026 Distribution on CBAPL Capital Notes
Jun 16, 2026
Commonwealth Bank of Australia has announced a new quarterly distribution for holders of its ASX-listed capital notes CBAPL, which are perpetual, non-cumulative instruments paying a margin of 2.85% over the bank bill swap rate. The announcement co...
CBA Sets Quarterly Distribution for CBAPK Capital Notes
Jun 16, 2026
Commonwealth Bank of Australia has announced a new quarterly distribution on its listed capital notes security CBAPK, which pays a floating rate of BBSW plus 2.75 per cent and is perpetual, non-cumulative and redeemable. The bank set the distribut...
CBA Ceases to Be Substantial Holder in Karoon Energy
Jun 9, 2026
Commonwealth Bank of Australia and its related entities have notified Karoon Energy that they have ceased to be a substantial holder in the company as of 8 June 2026. The change reflects a reduction in CBA’s voting interest below the substan...
CBA updates nominee structure for director Julie Galbo’s shareholding
May 29, 2026
Commonwealth Bank of Australia has disclosed a technical change in the way non-executive director Julie Birgitte Galbo’s indirect shareholding is recorded, without altering her overall economic interest in the bank. An off-market transfer mo...
Commonwealth Bank of Australia issues EUR 1.25bn subordinated notes for institutional investors
May 21, 2026
Commonwealth Bank of Australia has issued EUR 1.25 billion of subordinated notes under its U.S.$70 billion Euro Medium Term Note Programme, as detailed in a newly released pricing supplement. The notes are targeted at eligible counterparties and p...
CBA Director Paul O’Malley Increases Shareholding in On‑Market Trade
May 21, 2026
Commonwealth Bank of Australia disclosed a change in the shareholding of director Paul Francis O’Malley, as required under ASX listing rules. O’Malley holds his interest indirectly through Invia Custodian Pty Limited for Talbragar Nomi...
CBA Director Katherine Howitt Increases Shareholding via Board Share Plan
May 21, 2026
Commonwealth Bank of Australia has disclosed a change in the shareholding of non-executive director Katherine Neisha Howitt, in line with ASX listing rule requirements. Howitt increased her direct holding in the bank by 74 fully paid ordinary shar...
CBA Releases Basel III Capital and Risk Disclosures for March 2026
May 12, 2026
Commonwealth Bank of Australia has released its Basel III Pillar 3 capital adequacy and risk disclosures as at 31 March 2026, outlining its regulatory capital position and risk profile. The disclosure provides stakeholders with transparency on the...
CBA posts steady quarterly profit and bolsters provisions amid uncertainty
May 12, 2026
Commonwealth Bank of Australia reported unaudited cash net profit after tax of about A$2.7 billion for the March 2026 quarter, broadly stable versus the first half average and up on the prior year, as lending and deposit growth offset the impact o...
Commonwealth Bank of Australia Drops Below Substantial Holder Threshold in Hub24
May 7, 2026
Commonwealth Bank of Australia and its related entities have notified Hub24 Ltd that they have ceased to be a substantial holder in the company as of 6 May 2026, superseding a prior substantial holding notice lodged in late April. The change refle...
Commonwealth Bank of Australia Exits Substantial Holder Position in Karoon Energy
May 4, 2026
Commonwealth Bank of Australia and its related entities have notified Karoon Energy that they have ceased to be a substantial holder in the company as of 1 May 2026, following changes in their relevant interests in Karoon’s voting securities...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.