Commonwealth Bank of Australia (AU:CBA)
ASX:CBA
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Commonwealth Bank of Australia
(Sydney:CBA)
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Rating:70Outperform
Price Target:
AU$175.00
▼(-2.06% Downside)
Action:UpgradedDate:02/11/26
The score is driven primarily by solid financial performance (strong profitability and revenue growth, but offset by leverage and weak cash generation) and a supportive earnings call (strong capital, funding, growth and dividend continuity amid competitive and cost pressures). Technicals add modest support with improving near-term momentum but a still-weaker longer-term trend, while valuation is a headwind due to a higher P/E despite a ~3.06% dividend yield.
Positive Factors
Strong capital and liquidity
A CET1 ratio well above regulatory minimum, very large liquid assets and a long weighted funding maturity materially reduce regulatory and rollover risk. This durable funding and capital buffer supports dividend continuity, above-system lending and the ability to absorb macro shocks without rapid balance-sheet deleveraging.
Negative Factors
High leverage on balance sheet
A high debt-to-equity profile increases sensitivity to funding stress and interest rate moves, limiting strategic flexibility. In adverse scenarios leverage can amplify losses, raise capital costs or force more conservative lending, constraining long-term growth and requiring careful capital management.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capital and liquidity
A CET1 ratio well above regulatory minimum, very large liquid assets and a long weighted funding maturity materially reduce regulatory and rollover risk. This durable funding and capital buffer supports dividend continuity, above-system lending and the ability to absorb macro shocks without rapid balance-sheet deleveraging.
Read all positive factors
Commonwealth Bank of Australia (CBA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$306.57B
Dividend Yield3%
Average Volume (3M)1.73M
Price to Earnings (P/E)12.5
Beta (1Y)0.88
Revenue Growth6.39%
EPS Growth7.78%
CountryAU
Employees49,682
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)3.23
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$125.17Price Target Upside-29.95% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering9
EPS Forecast (FY)6.55
Revenue Forecast (FY)AU$30.19B
Commonwealth Bank of Australia Business Overview & Revenue Model
Company Description
Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The c...
How the Company Makes Money
CBA 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 a...
Commonwealth Bank of Australia Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 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 | 14.62B | 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 | 0.00 | -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 Technical Analysis
Positive
178.68
Price Trends
170.87
Positive
161.68
Positive
165.43
Positive
Market Momentum
2.29
Negative
68.13
Neutral
91.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CBA, the sentiment is Positive. The current price of 178.68 is above the 20-day moving average (MA) of 174.78, above the 50-day MA of 170.87, and above the 200-day MA of 165.43, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 91.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CBA.
Commonwealth Bank of Australia Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$306.57B | 12.51 | 13.27% | 3.00% | 6.39% | 7.78% | |
70 Outperform | AU$116.63B | 10.98 | 8.26% | 4.53% | 5.21% | -9.07% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$16.94B | 11.54 | 21.78% | 2.69% | 6.44% | 22.38% | |
61 Neutral | AU$146.10B | 9.26 | 9.55% | 3.90% | 1.57% | 0.13% | |
58 Neutral | AU$138.76B | 19.98 | 8.08% | 4.00% | -4.56% | -1.63% | |
56 Neutral | AU$82.24B | 12.15 | 10.75% | 3.27% | 3.65% | 1.58% |
* Financial Sector Average
AU:CBA
Commonwealth Bank of Australia
183.38
30.53
19.97%
AU:ANZ
ANZ Group Holdings
38.84
12.77
48.98%
AU:CPU
Computershare Limited
29.28
-6.84
-18.95%
AU:MQG
Macquarie Group Limited
225.00
52.10
30.13%
AU:NAB
National Australia Bank Limited
45.36
13.24
41.20%
AU:WBC
Westpac Banking
42.77
13.56
46.42%
Commonwealth Bank of Australia Corporate Events
ASB lifts half-year profit as lending, KiwiSaver funds and tech investment grow
Feb 10, 2026
ASB, the New Zealand subsidiary of Commonwealth Bank of Australia, reported a cash net profit after tax of $719 million for the six months to 31 December 2025, up 1% year-on-year, with statutory NPAT at $765 million. The bank continued to expand i...
CBA Review Confirms Sustainability of Prudential Remedial Reforms
Feb 10, 2026
Commonwealth Bank of Australia has released the findings of a voluntarily commissioned independent review into the sustainability of outcomes delivered under its Prudential Inquiry Remedial Action Plan. The review, conducted by Promontory, conclud...
Commonwealth Bank updates broker details for ongoing on‑market buy‑back
Feb 10, 2026
Commonwealth Bank of Australia has updated details of its on‑market share buy‑back of ordinary fully paid shares, first notified in August 2023, through a new Appendix 3C filing with the ASX. The latest announcement, dated 11 February ...
Commonwealth Bank posts stronger half-year profit and lifts dividend amid focus on resilience
Feb 10, 2026
Commonwealth Bank of Australia reported solid half-year results to 31 December 2025, underpinned by its long-term strategy to build a strong, resilient franchise and support customers and communities. The bank highlighted its scale in the Australi...
Commonwealth Bank Releases Basel III Capital and Risk Disclosures
Feb 10, 2026
Commonwealth Bank of Australia has released its Basel III Pillar 3 capital adequacy and risk disclosures as at 31 December 2025. The publication provides investors and regulators with updated transparency on the bank’s capital position and r...
CBA outlines scope and limitations of half-year 2025 results pack
Feb 10, 2026
Commonwealth Bank of Australia has released its results presentation and investor discussion pack for the half year ended 31 December 2025, aimed at a professional analyst and institutional investor audience. The material outlines the bank’s...
Commonwealth Bank lifts profit, dividend on solid first-half performance
Feb 10, 2026
Commonwealth Bank of Australia reported solid first-half 2026 results, with cash net profit after tax rising 6% year on year to $5.45 billion, supported by lending and deposit growth despite margin pressure and higher operating expenses. The bank ...
Commonwealth Bank of Australia Sets A$2.35 Interim Dividend and Payment Timetable
Feb 10, 2026
Commonwealth Bank of Australia has declared an ordinary interim dividend of A$2.35 per fully paid share, relating to the six‑month period ended 31 December 2025. The record date for eligible shareholders is 19 February 2026, with the stock t...
Commonwealth Bank lifts half-year profit and dividend on solid revenue growth
Feb 10, 2026
Commonwealth Bank of Australia reported a 6% rise in revenue from ordinary activities to $15 billion for the half year ended 31 December 2025, with net profit attributable to equity holders up 5% to $5.367 billion. The bank declared a fully franke...
CBA flags one-off items and divisional reshuffle ahead of 1H26 results
Feb 2, 2026
Commonwealth Bank of Australia has outlined several one-off items that will affect its first-half 2026 financial comparatives, including a $68 million pre-tax provision to fund additional goodwill payments to certain customers following ASIC’...
CBA Ceases to Be Substantial Shareholder in Karoon Energy
Jan 29, 2026
Commonwealth Bank of Australia and its related bodies corporate have notified Karoon Energy Ltd that they have ceased to be substantial shareholders in the company as of 28 January 2026. The change reflects a reduction in CBA’s relevant inte...
Commonwealth Bank of Australia Exits Substantial Holding in Karoon Energy
Jan 27, 2026
Commonwealth Bank of Australia and its related bodies corporate have notified Karoon Energy Ltd that they have ceased to be a substantial shareholder in the company as of 26 January 2026, in accordance with Australian Corporations Act disclosure r...
Commonwealth Bank of Australia Ceases to Be Substantial Holder in Karoon Energy
Jan 23, 2026
Commonwealth Bank of Australia has notified Karoon Energy Ltd that it and its related bodies corporate have ceased to be substantial shareholders in the company as of 22 January 2026. The change, disclosed via a substantial holder notice under the...
Commonwealth Bank of Australia Announces Lapse of 15,110 Conditional Share Rights
Dec 22, 2025
Commonwealth Bank of Australia has notified the market that 15,110 share rights (ASX code CBAAA) have lapsed after the conditions attached to these conditional rights were not satisfied or became incapable of being satisfied, effective 22 December...
Commonwealth Bank of Australia Announces New Dividend Distribution
Dec 16, 2025
The Commonwealth Bank of Australia announced a new dividend distribution for its security, CBAPM – CAP NOTE 3-BBSW+3.00% PERP NON-CUM RED T-06-30, with a distribution amount of AUD 1.1585. The ex-date is set for March 5, 2026, and the paymen...
Commonwealth Bank of Australia Announces New Dividend Distribution
Dec 16, 2025
The Commonwealth Bank of Australia announced a new dividend distribution for its security, CAP NOTE 3-BBSW+2.85% PERP NON-CUM RED T-06-28, with a distribution amount of AUD 1.1326. The ex-date is set for March 5, 2026, the record date is March 6, ...
Commonwealth Bank of Australia Announces New Dividend Distribution
Dec 16, 2025
The Commonwealth Bank of Australia announced a new dividend distribution for its security, CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-06-29, with a distribution amount of AUD 1.1154. The ex-date is set for March 5, 2026, with the record date on Marc...
Commonwealth Bank Announces New Distribution for CAP NOTE Security
Dec 16, 2025
The Commonwealth Bank of Australia has announced a new distribution for its security, CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-10-26, with a distribution amount of AUD 1.1154. The ex-date is set for March 5, 2026, with a record date of March 6, 20...
Commonwealth Bank of Australia Announces New Dividend Distribution
Dec 16, 2025
The Commonwealth Bank of Australia has announced a new dividend distribution for its security, CAP NOTE 3-BBSW+3.00% PERP NON-CUM RED T-04-27, with a distribution amount of AUD 1.1585. The dividend relates to a quarterly period ending on March 15,...
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 entit...
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...
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-...
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, ...
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 capabilitie...
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...
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...
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, w...
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.