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Commonwealth Bank of Australia
(Sydney:CBA)
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Rating:54Neutral
Price Target:
AU$166.00
▲(5.73% Upside)
Action:Downgraded
Date:08/19/26
The score is held back primarily by weakening financial quality signals (negative operating/free cash flow in 2025–2026 and higher leverage) and bearish technicals (below key moving averages with negative MACD). These are partly offset by a constructive earnings call (solid franchise performance, conservative funding/liquidity, and tech/AI productivity progress) and a mixed valuation profile (higher P/E with a moderate dividend yield).
Positive Factors
Sustained Profit Growth
Strong profit and pre-provision growth indicate durable earnings capacity across the franchise. Continued income expansion provides funding for technology, customer service and risk investment, supporting competitiveness over the medium term.
Negative Factors
Higher Leverage and Weak Cash Generation
Higher leverage reduces balance-sheet flexibility, while negative recent cash generation increases dependence on funding and asset-liability management. Although typical bank structures are leveraged, the deterioration raises resilience risks if conditions worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profit Growth
Strong profit and pre-provision growth indicate durable earnings capacity across the franchise. Continued income expansion provides funding for technology, customer service and risk investment, supporting competitiveness over the medium term.
Read all positive factors
Commonwealth Bank of Australia (CBA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$262.49B
Dividend Yield3.25%
Average Volume (3M)1.73M
Price to Earnings (P/E)24.0
Beta (1Y)0.83
Revenue Growth0.78%
EPS Growth7.41%
CountryAU
Employees51,714
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)6.50
Shares Outstanding1,673,462,400
10 Day Avg. Volume1,634,047
30 Day Avg. Volume1,734,722
Financial Highlights & Ratios
PEG Ratio3.40
Price to Book (P/B)3.50
Price to Sales (P/S)3.91
P/FCF Ratio-286.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$122.33Price Target Upside-22.09% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering8
EPS Forecast (FY)6.7
Revenue Forecast (FY)AU$31.41B
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:Aug 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call highlights a strong full-year performance with revenue, cash profit and dividend growth, solid deposit funding, meaningful progress in digital/AI initiatives and disciplined capital and provisioning settings. These positives are tempered by a softer second half—mortgage application declines, home-price moderation, margin pressures from competition, elevated IT costs and modest increases in arrears and provisions. Overall the positives (broad-based franchise growth, disciplined margins, healthy liquidity and clear investment progress) outweigh the operational and macro-driven headwinds.Positive Updates
Top-Line and Profit Growth
Cash net profit after tax (cash NPAT) increased ~7.1% to approximately $11.0bn; statutory profit was $10.9bn. Cash EPS increased by $0.44.
Negative Updates
Second-Half Softening in Revenue Momentum
Sequential revenue momentum slowed with headline half-on-half growth of 1.2% (2.9% after adjusting for day count); other operating income softened in H2 driven by weaker retail FX revenues and lower trading income.
Read all updates
Q4-2026 Updates
Positive
Negative
Top-Line and Profit Growth
Cash net profit after tax (cash NPAT) increased ~7.1% to approximately $11.0bn; statutory profit was $10.9bn. Cash EPS increased by $0.44.
Read all positive updates
Company Guidance
Guidance: For FY27 CBA will pursue three outcomes—stronger customer protection, faster/personalised service and better performance—while targeting mortgage credit growth of 4–6% (management sees 4–5% as more likely), an effective tax rate of ~30% and holding annual technology/investment cash spend at A$2.4bn; the bank expects gross AI benefits to roughly double to ~A$400m and to exceed investment next year, building on ~A$400m of productivity savings in the past 12 months. Balance‑sheet and capital settings remain conservative: CET1 ~12%, customer deposit funding ~79%, weighted‑average maturity of long‑term funding 5.2 years, A$191bn liquid assets and total provisions A$6.5bn (A$2.7bn above the central scenario); credit metrics cited include a loan‑loss rate ~8bps (LLP A$788m), home‑loan arrears 73bps and troublesome/non‑performing exposures ~95bps. Progress will be measured by customer engagement, service quality and resolution times, losses prevented, delivery speed, unit costs, realized financial benefits and risk‑adjusted earnings; FY26 results that underpin this guidance included operating income +6.2%, operating expenses +5.6%, pre‑provision profit +6.5%, cash profit +7.1% (A$11.0bn), statutory profit A$10.9bn and a full‑year dividend A$5.05 (final A$2.70, payout ~77%).Commonwealth Bank of Australia Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 70.43B | 69.74B | 65.53B | 48.56B | 28.11B |
| Gross Profit | 29.49B | 28.66B | 27.31B | 27.14B | 23.29B |
| EBITDA | 16.14B | 15.95B | 15.28B | 15.42B | 15.17B |
| Net Income | 10.87B | 10.12B | 9.39B | 10.00B | 10.69B |
Balance Sheet | |||||
| Total Assets | 1.45T | 1.35T | 1.25T | 1.25T | 1.22T |
| Cash, Cash Equivalents and Short-Term Investments | 137.33B | 55.50B | 48.11B | 108.01B | 120.31B |
| Total Debt | 308.21B | 216.23B | 186.69B | 161.55B | 151.60B |
| Total Liabilities | 1.37T | 1.28T | 1.18T | 1.18T | 1.14T |
| Stockholders Equity | 78.70B | 78.78B | 73.09B | 71.63B | 72.83B |
Cash Flow | |||||
| Free Cash Flow | -961.00M | -2.46B | 8.51B | 6.78B | 20.68B |
| Operating Cash Flow | -177.00M | -825.00M | 8.91B | 8.35B | 21.66B |
| Investing Cash Flow | -102.50B | -329.00M | -1.11B | -15.74B | -96.76B |
| Financing Cash Flow | 98.89B | 7.59B | -10.71B | -5.62B | 106.72B |
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$111.56B | 18.70 | 8.30% | 4.55% | -5.34% | -13.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | AU$20.53B | 19.74 | 10.06% | 3.58% | -2.94% | -31.48% | |
63 Neutral | AU$118.91B | 19.13 | 9.88% | 4.21% | -8.10% | -10.70% | |
62 Neutral | AU$92.74B | 19.76 | 13.72% | 2.74% | 4.80% | 30.56% | |
54 Neutral | AU$262.49B | 23.99 | 13.94% | 2.81% | 0.78% | 7.41% | |
54 Neutral | AU$116.21B | 16.57 | 9.77% | 4.15% | -3.87% | 1.20% |
* Financial Sector Average
AU:CBA
Commonwealth Bank of Australia
154.96
-13.26
-7.88%
AU:ANZ
ANZ Group Holdings
36.46
4.23
13.14%
AU:MQG
Macquarie Group Limited
250.94
33.35
15.33%
AU:NAB
National Australia Bank Limited
37.98
-3.22
-7.82%
AU:SUN
Suncorp Group
18.85
-1.45
-7.13%
AU:WBC
Westpac Banking
33.68
-3.83
-10.22%
Commonwealth Bank of Australia Corporate Events
Commonwealth Bank Issues New Ordinary Shares from Unquoted Securities
Aug 17, 2026
Commonwealth Bank of Australia has notified the market of the issue of 236,632 ordinary fully paid shares following the conversion or exercise of previously unquoted securities. The new shares, issued on 13 August 2026, represent a modest equity i...
Commonwealth Bank Ends On‑Market Share Buy-Back After Repurchasing A$299.7m in Stock
Aug 13, 2026
Commonwealth Bank of Australia has completed an on-market share buy-back of its ordinary fully paid shares listed on the ASX under code CBA, consistent with its capital management strategy and shareholder return focus. The bank did not undertake a...
ASB profit dips despite strong lending as costs surge and NZ outlook stays uncertain
Aug 11, 2026
ASB, the New Zealand subsidiary of Commonwealth Bank of Australia, reported a 2% decline in cash net profit after tax to $1,318 million for the year to 30 June 2026, with statutory profit down 4%, as strong lending and deposit growth was offset by...
CBA Faces Shareholder Push on Governance and Deforestation-Free Finance
Aug 11, 2026
Commonwealth Bank of Australia has received shareholder-proposed resolutions under section 249N of the Corporations Act for consideration at its annual general meeting on 14 October 2026. The bank will publish its formal notice of meeting in Septe...
CBA sets 2027 financial calendar and shifts dividend payment timing
Aug 11, 2026
Commonwealth Bank of Australia has released its 2027 financial calendar, detailing key dates for half-year and full-year results, interim and final dividend record and payment dates, director nomination deadlines and the timing and location of its...
CBA files 2026 corporate governance statement and Appendix 4G with ASX
Aug 11, 2026
Commonwealth Bank of Australia has lodged its 2026 Corporate Governance Statement and accompanying Appendix 4G with the ASX, in line with listing rules requiring detailed disclosure of governance practices. The statement, current as of 12 August 2...
Commonwealth Bank of Australia Publishes 2026 Annual and Sustainability Reports
Aug 11, 2026
Commonwealth Bank of Australia has released its 2026 Annual Report, detailing financial and non-financial performance across its banking and wealth management operations for the year to 30 June 2026. The report also covers the Group’s govern...
CBA Publishes Basel III Capital and Risk Disclosures for June 2026
Aug 11, 2026
Commonwealth Bank of Australia has released its Basel III Pillar 3 capital adequacy and risk disclosures as at 30 June 2026, providing detailed regulatory reporting on its capital position and risk profile. The disclosures reflect the bank’s...
CBA outlines 2026 draft results pack focused on franchise strength, capital and customer support
Aug 11, 2026
Commonwealth Bank of Australia has prepared a draft and confidential results presentation and investor discussion pack for the year ended 30 June 2026, outlining CEO and CFO commentary, divisional performance, credit quality, and capital managemen...
CBA Delivers Record System-Beating Growth and Higher Profit in FY26
Aug 11, 2026
Commonwealth Bank of Australia reported a strong FY26 performance, with cash net profit after tax rising 7% to $11 billion, pre-provision profit up 6% to $16.5 billion and return on equity increasing to 14%. Operating income grew 6% on the back of...
Commonwealth Bank of Australia Declares AUD 2.70 Interim Dividend
Aug 11, 2026
Commonwealth Bank of Australia has declared an ordinary interim dividend of AUD 2.70 per fully paid share for the six‑month period ended 30 June 2026. The bank has set 19 August 2026 as the ex‑dividend date, 20 August 2026 as the recor...
Commonwealth Bank lifts full-year profit and boosts shareholder payouts
Aug 11, 2026
Commonwealth Bank of Australia reported a solid full-year result for the 12 months to 30 June 2026, with revenue from ordinary activities rising 7% to $30.15 billion. Net profit after tax attributable to equity holders also grew 7% to $10.87 billi...
Commonwealth Bank of Australia strengthens board with appointment of Julie Coates
Aug 5, 2026
Commonwealth Bank of Australia has announced the appointment of Julie Coates as an Independent Non-Executive Director to its board, effective on or around 1 September 2026, subject to regulatory approvals. Coates currently serves on the boards of ...
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...
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.