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Commonwealth Bank of Australia (AU:CBA)
ASX:CBA

Commonwealth Bank of Australia (CBA) AI Stock Analysis

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AU:CBA

Commonwealth Bank of Australia

(Sydney:CBA)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
AU$162.00
▲(5.29% Upside)
The overall stock score is driven by strong financial performance and positive earnings call sentiment, despite technical analysis indicating bearish momentum and valuation concerns. The bank's strategic focus on technology and customer experience supports its long-term growth potential, but high leverage and cash flow issues need addressing.
Positive Factors
Revenue Growth
Robust revenue growth indicates strong business expansion and market demand, supporting long-term profitability and competitive positioning.
Technological Advancements
Investments in technology and AI enhance operational efficiency and customer experience, providing a sustainable competitive advantage.
Strong Lending Growth
Growth in lending indicates strong demand for financial products, supporting revenue and profit growth in core banking operations.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially impacting the bank's ability to manage economic downturns and regulatory changes.
Cash Flow Challenges
Negative cash flow growth can strain liquidity, limiting the bank's ability to invest in growth opportunities and meet financial obligations.
Competitive Pressure on Margins
Competitive pressure on margins can erode profitability, necessitating strategic adjustments to maintain financial performance.

Commonwealth Bank of Australia (CBA) vs. iShares MSCI Australia ETF (EWA)

Commonwealth Bank of Australia Business Overview & Revenue Model

Company DescriptionCommonwealth Bank of Australia (CBA) is one of the largest financial institutions in Australia, providing a wide range of banking and financial services to individuals, businesses, and government entities. Established in 1911, CBA operates across various sectors, including retail banking, business banking, institutional banking, and wealth management. Its core products and services include personal and home loans, credit cards, transaction and savings accounts, investment products, insurance, and superannuation services.
How the Company Makes MoneyCBA generates revenue primarily through interest income from loans, which includes personal loans, home mortgages, and business loans. The bank also earns significant income from fees and commissions associated with its banking services, such as account maintenance fees, transaction fees, and service fees for financial products. Additionally, CBA benefits from wealth management services, including investment management and superannuation, which contribute to its fee-based income. The bank has established partnerships with various financial technology firms to enhance its service offerings and improve operational efficiency, further supporting its revenue generation. CBA's diversified revenue streams and strong market position in Australia enable it to maintain stable profitability.

Commonwealth Bank of Australia Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in asset growth, fraud prevention, and technological advancements. However, these were offset by challenges in maintaining margins, rising expenses, and competitive pressures in the retail sector. The sentiment reflects a balanced view with strong operational performance tempered by external competitive pressures.
Q4-2025 Updates
Positive Updates
Record Risk-Weighted Asset Growth
The bank achieved record risk-weighted asset growth of $29 billion, demonstrating strong lending across key segments.
Reduction in Customer Losses from Scams
Investments in combating fraud and scams led to a 76% reduction in customer losses from scams since late 2022.
Strong Dividend Payments
The bank paid $8 billion in dividends, benefiting more than 13 million Australians.
Increase in Home and Business Lending
Home lending grew by 6% and business lending by 11% over the past 12 months, contributing to strong earnings performance.
Record Performance in Business Banking
Business banking contributed approximately 40% of group net profit after tax, showing strong growth and market share gains.
Advancements in AI and Technology
The bank accelerated technology modernization, moving 10 petabytes of data to AWS Cloud and hiring 2,000 engineers.
Negative Updates
Competitive Pressure on Margins
The bank faced intense competitive pressure on both retail and business lending margins, impacting net interest margin stability.
Expense Growth Outpacing Inflation
Operating expenses increased by 6%, driven by inflation and technology investments, outpacing income growth.
Decline in Retail MFI Share
The retail main financial institution (MFI) share fell sharply, reflecting increased competitive intensity.
Challenges in Maintaining Deposit Margins
Deposit margins are under pressure due to competition and lower interest rates, posing challenges for future earnings.
Company Guidance
During the Commonwealth Bank of Australia's full-year results briefing for the fiscal year ended June 30, 2025, several key financial metrics and strategic priorities were outlined. The bank reported a cash net profit after tax increase of 4% to $10.25 billion, with operating income rising by 5% to $28.5 billion. The bank's net interest income grew by $1.2 billion due to strong lending growth, while operating expenses increased by 6%, driven by inflation and strategic investments in technology and frontline operations. Loan impairment expenses decreased by nearly 10% to $726 million. A $4.85 fully franked dividend was declared, with the bank's capital ratio at 12.3%, $10 billion above regulatory requirements. The bank continued to focus on supporting customers and the broader economy, providing $42 billion in business loans and $22 billion in interest to savers, while investing $900 million to combat financial crime. Key strategic pillars included enhancing customer experiences, driving technology and AI advancements, and reinforcing operational resilience. The bank maintained strong customer relationships, evidenced by leading Net Promoter Scores and digital engagement metrics, such as the CommBank app's 9 million active users.

Commonwealth Bank of Australia Financial Statement Overview

Summary
Commonwealth Bank of Australia shows strong revenue growth and profitability, with effective equity utilization. However, high leverage and cash flow challenges present potential risks. Addressing operational efficiencies and improving cash flow management will be crucial for maintaining financial health.
Income Statement
85
Very Positive
The income statement reflects strong revenue growth with a 160.88% increase in the latest year, indicating robust business expansion. The gross profit margin remains healthy, and the net profit margin is solid, showcasing profitability. However, the EBIT and EBITDA margins suggest room for operational efficiency improvements.
Balance Sheet
70
Positive
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is strong, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.
Cash Flow
60
Neutral
The cash flow statement reveals challenges with negative free cash flow growth and negative operating cash flow, which could impact liquidity. The free cash flow to net income ratio is unfavorable, indicating cash flow issues despite profitability. This area requires attention to ensure sustainable cash generation.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue69.74B69.74B65.53B48.56B28.11B29.37B
Gross Profit28.66B28.66B27.31B27.14B23.29B23.55B
EBITDA14.71B15.95B15.28B15.42B15.17B13.76B
Net Income10.12B10.12B9.39B10.00B10.69B10.18B
Balance Sheet
Total Assets1.35T1.35T1.25T1.25T1.22T1.09T
Cash, Cash Equivalents and Short-Term Investments55.50B55.50B48.11B108.01B120.31B88.52B
Total Debt216.23B216.23B186.69B161.55B151.60B140.76B
Total Liabilities1.28T1.28T1.18T1.18T1.14T1.01T
Stockholders Equity78.78B78.78B73.09B71.63B72.83B78.68B
Cash Flow
Free Cash Flow-12.91B-2.46B8.51B6.78B20.68B12.54B
Operating Cash Flow8.68B-825.00M8.91B8.35B21.66B13.30B
Investing Cash Flow-75.55B-329.00M-1.11B-15.74B-96.76B-38.79B
Financing Cash Flow73.31B7.59B-10.71B-5.62B106.72B85.98B

Commonwealth Bank of Australia Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price153.86
Price Trends
50DMA
161.77
Negative
100DMA
165.40
Negative
200DMA
165.85
Negative
Market Momentum
MACD
-1.06
Negative
RSI
54.17
Neutral
STOCH
76.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CBA, the sentiment is Neutral. The current price of 153.86 is below the 20-day moving average (MA) of 154.22, below the 50-day MA of 161.77, and below the 200-day MA of 165.85, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CBA.

Commonwealth Bank of Australia Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$108.44B18.187.92%4.58%5.21%-9.07%
69
Neutral
AU$132.40B19.199.08%3.95%1.57%0.13%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
64
Neutral
AU$263.73B26.0713.34%3.07%6.39%7.78%
64
Neutral
AU$128.78B19.0710.36%4.04%-4.56%-1.63%
61
Neutral
$19.83B21.4729.52%2.70%6.44%22.38%
56
Neutral
AU$73.32B20.2010.30%3.34%3.65%1.58%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CBA
Commonwealth Bank of Australia
158.26
7.61
5.05%
AU:ANZ
ANZ Group Holdings
36.27
8.94
32.73%
AU:CPU
Computershare Limited
34.48
1.41
4.26%
AU:MQG
Macquarie Group Limited
201.84
-14.11
-6.54%
AU:NAB
National Australia Bank Limited
42.13
6.33
17.67%
AU:WBC
Westpac Banking
38.75
7.70
24.81%

Commonwealth Bank of Australia Corporate Events

Commonwealth Bank of Australia Announces Voting Share Control Details
Dec 4, 2025

The Commonwealth Bank of Australia has announced the aggregated percentage of voting shares it controls, as per an exemption granted by the Australian Securities and Investments Commission. As of December 3, 2025, the bank and its controlled entities have the power to control voting or disposal of 0.03% of the total voting shares, with no net economic exposure. This announcement provides transparency regarding the bank’s shareholding structure, which is crucial for stakeholders and regulatory compliance.

Commonwealth Bank Updates Director’s Interest Notice
Dec 1, 2025

The Commonwealth Bank of Australia has announced a change in the director’s interest notice for Matthew Peter Comyn. This update reflects the adjustments in his holdings of fully paid ordinary shares and rights under the Employee Equity Plan, which could impact the bank’s governance and shareholder dynamics.

Commonwealth Bank of Australia Issues Unquoted Share Rights
Dec 1, 2025

The Commonwealth Bank of Australia has announced the issuance of 108,764 unquoted share rights as part of an employee incentive scheme. This move is aimed at enhancing employee engagement and aligning their interests with the company’s long-term goals, potentially impacting the bank’s operational dynamics and stakeholder relations positively.

Commonwealth Bank of Australia Ceases Substantial Holding in Karoon Energy
Nov 25, 2025

The Commonwealth Bank of Australia has announced that it has ceased to be a substantial holder in Karoon Energy Ltd as of November 24, 2025. This change in holding could impact CBA’s investment strategy and influence its market positioning, while stakeholders of Karoon Energy may see shifts in shareholder dynamics.

Commonwealth Bank Announces Leadership Change in Technology Division
Nov 24, 2025

The Commonwealth Bank of Australia announced the departure of its Group Executive Technology and Group Chief Information Officer, Gavin Munroe, who played a significant role in advancing the bank’s technology modernization and AI capabilities. The bank has made substantial progress in technology delivery and AI maturity, including a major migration of its SAP Core Banking platform to AWS. Interim leadership will be provided by Rodrigo Castillo and Victoria Ledda, ensuring continuity in the bank’s technology strategy.

Commonwealth Bank of Australia Announces Director’s Share Acquisition
Nov 19, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest, as Alistair Currie acquired 28 fully paid ordinary shares through participation in the Non-Executive Director Share Plan. This change reflects the bank’s ongoing governance and compliance with corporate regulations, ensuring transparency in its operations and maintaining trust with stakeholders.

Commonwealth Bank of Australia Director Increases Shareholding
Nov 19, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest notice, highlighting that Director Katherine Neisha Howitt acquired 50 fully paid ordinary shares through participation in the Non-Executive Director Share Plan. This acquisition reflects the director’s increased stake in the company, potentially signaling confidence in the bank’s future performance and aligning with shareholder interests.

Commonwealth Bank of Australia Updates Director’s Interest Notice
Nov 19, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest notice for Julie Birgitte Galbo, who acquired additional shares through on-market trades. This update reflects a slight increase in her indirect shareholding, which may indicate confidence in the company’s future performance and could be of interest to stakeholders monitoring director share movements.

Commonwealth Bank Releases Capital Adequacy and Risk Disclosures
Nov 10, 2025

The Commonwealth Bank of Australia has released its Capital Adequacy and Risk Disclosures as of 30 September 2025, in accordance with Basel III Pillar 3 requirements. This disclosure provides insights into the bank’s capital strength and risk management practices, which are crucial for maintaining investor confidence and ensuring regulatory compliance. The announcement underscores the bank’s commitment to transparency and robust financial health, which are essential for its competitive positioning and stakeholder trust.

Commonwealth Bank of Australia Reports Strong Quarterly Performance Amid Economic Challenges
Nov 10, 2025

The Commonwealth Bank of Australia reported a strong performance for the quarter ending September 2025, with a focus on customer support and strategic execution. The bank maintained a solid balance sheet, with a CET1 ratio well above the regulatory minimum and strong deposit funding. Operating income increased by 3% due to growth in lending and deposits, although net interest margins were slightly reduced. The bank paid $4.4 billion in dividends, benefiting shareholders and the broader Australian economy. Despite challenges like cost-of-living pressures and global uncertainties, the bank remains optimistic about Australia’s economic outlook and continues to focus on its strategy to support growth and stability.

Commonwealth Bank of Australia 2025 AGM: Resolutions Passed with Strong Support
Oct 15, 2025

The Commonwealth Bank of Australia held its 2025 Annual General Meeting in Brisbane, where all resolutions were passed by a poll. Key decisions included the re-election and election of directors and the adoption of the 2025 remuneration report, indicating strong shareholder support for the current management and strategic direction of the bank.

CBA’s 2025 AGM: Strengthening Customer Support and Digital Innovation
Oct 15, 2025

In the 2025 Annual General Meeting, CBA’s CEO Matt Comyn highlighted the bank’s efforts to support customers amidst economic challenges, such as cost-of-living pressures. The bank has implemented tailored payment arrangements, reduced financial hardship cases, and enhanced digital financial tools to aid customers. CBA has also relaunched its loyalty program, CommBank Yello, to provide additional value to its users. These initiatives underscore CBA’s commitment to being a reliable financial partner and its strategic focus on customer support and digital innovation.

CBA’s Strategic Focus Amid Economic Challenges
Oct 15, 2025

At the 2025 Annual General Meeting, CBA’s Chair highlighted the bank’s commitment to supporting customers amidst economic challenges, such as rising living costs and housing affordability concerns. The bank’s strategy focuses on building a future-ready institution by investing in technology and its workforce, aiming to enhance living standards and provide value to shareholders.

ASB Bank Settles Class Action with NZ$135 Million Agreement
Oct 6, 2025

ASB Bank Limited, a subsidiary of the Commonwealth Bank of Australia, has reached a settlement in a class action lawsuit related to the Credit Contracts and Consumer Finance Act 2003 in New Zealand. The settlement involves a payment of NZ$135,625,000 and is subject to approval by the High Court of New Zealand. This resolution, while not an admission of liability by ASB, could impact the company’s financial standing and stakeholder relations, highlighting its commitment to resolving legal disputes efficiently.

Commonwealth Bank of Australia: Director’s Interest Update
Oct 3, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest notice involving Katherine Neisha Howitt. On September 29, 2025, Ms. Howitt acquired 39 fully paid ordinary shares through the bank’s Dividend Reinvestment Plan, increasing her direct holdings to 2,534 shares jointly held with Mr. Diggory William Howitt. This change reflects the director’s continued investment in the bank, potentially signaling confidence in the company’s financial health and future prospects.

Commonwealth Bank of Australia Updates Director’s Shareholding
Oct 3, 2025

The Commonwealth Bank of Australia has announced a change in the director’s interest notice for Mary Louise Padbury, who has participated in the bank’s Dividend Reinvestment Plan. As a result of this participation, Padbury acquired 58 fully paid ordinary shares, increasing her direct holding to 3,800 shares. This change reflects the bank’s ongoing commitment to aligning the interests of its directors with those of its shareholders, potentially enhancing stakeholder confidence in the bank’s governance practices.

Commonwealth Bank Amends Pricing Supplement for Euro Debt Securities
Oct 1, 2025

Commonwealth Bank of Australia has amended and restated the pricing supplement for its EUR 1 billion subordinated debt securities due in 2037, issued under its Euro Medium Term Note Programme. The announcement highlights the prohibition of sales to retail investors in the European Economic Area and the United Kingdom, emphasizing that the target market for these notes is professional investors and eligible counterparties only. This move is part of the bank’s strategic approach to comply with regulatory requirements and focus on institutional investors, potentially impacting its market positioning and stakeholder engagement.

Commonwealth Bank of Australia Appoints New Director
Oct 1, 2025

The Commonwealth Bank of Australia has announced the appointment of Jane Frances McAloon as a new director, effective from October 1, 2025. As part of her initial interest notice, it was disclosed that she holds 300 fully paid ordinary shares through HTFS Nominees Pty Limited as trustee of the HUB24 Super Fund. This appointment is part of the bank’s ongoing efforts to strengthen its leadership team and enhance its governance structure.

Commonwealth Bank Updates Dividend Reinvestment Plan Details
Sep 23, 2025

The Commonwealth Bank of Australia has updated its previous announcement regarding the dividend distribution for its ordinary fully paid securities. The update pertains to the Dividend Reinvestment Plan (DRP) price, which is relevant for the six-month period ending on June 30, 2025. This update may impact shareholders who are part of the DRP, as it affects the terms under which dividends are reinvested.

Commonwealth Bank of Australia Announces New Distribution for CAP NOTE
Sep 16, 2025

Commonwealth Bank of Australia announced a new distribution for its security, CAP NOTE 3-BBSW+3.00% PERP NON-CUM RED T-06-30, with a distribution amount of AUD 1.1484. The distribution relates to a quarterly period ending on December 15, 2025, with the record date set for December 5, 2025, and payment to be made on December 15, 2025. This announcement highlights the bank’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness to stakeholders and maintaining its competitive position in the financial market.

Commonwealth Bank of Australia Announces New Dividend Distribution
Sep 16, 2025

The Commonwealth Bank of Australia has announced a new dividend distribution for its security CBAPL, with a distribution amount of AUD 1.1222. The ex-date for this dividend is set for December 4, 2025, with the record date on December 5, 2025, and payment scheduled for December 15, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and may influence the bank’s market positioning by reinforcing investor confidence.

Commonwealth Bank of Australia Announces New Dividend Distribution
Sep 16, 2025

The Commonwealth Bank of Australia has announced a new dividend distribution for its security, CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-06-29, with a payment amount of AUD 1.1047. The distribution is scheduled for payment on December 15, 2025, with an ex-date of December 4, 2025, and a record date of December 5, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and maintaining its financial stability, potentially impacting its market positioning positively.

Commonwealth Bank of Australia Announces New Dividend Distribution
Sep 16, 2025

The Commonwealth Bank of Australia has announced a new dividend distribution for its security CBAPJ, with a distribution amount of AUD 1.1047. The payment is scheduled for December 15, 2025, with a record date of December 5, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and may impact its financial performance and investor relations positively.

Commonwealth Bank of Australia Announces New Dividend Distribution
Sep 16, 2025

Commonwealth Bank of Australia announced a new dividend distribution for its security CBAPI, with a distribution amount of AUD 1.1484. The ex-date for this distribution is set for December 4, 2025, with the record date on December 5, 2025, and payment to be made on December 15, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and maintaining its financial stability.

Commonwealth Bank Releases 2025 AGM Notice
Sep 10, 2025

Commonwealth Bank of Australia has released its 2025 Notice of Annual General Meeting (AGM) in compliance with ASX Listing Rules. The announcement includes details about the AGM, voting and proxy forms, and shareholder questions, which are accessible on the CBA website. This release is part of CBA’s ongoing commitment to transparency and shareholder engagement, potentially impacting its corporate governance and stakeholder relations.

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.Date of analysis: Nov 21, 2025