Earnings Alerts

Commonwealth Bank of Australia (CBA) Earnings: FY Net Income Falls Short of Estimates Despite Strong Dividends

  • Commonwealth Bank of Australia (CBA) reported a net income of A$10.12 billion, which fell short of the projected A$10.25 billion.
  • The final dividend per share was set at A$2.60.
  • The bank’s Common Equity Tier 1 ratio, as per the APRA guidelines, was 12.3%, matching the estimates.
  • Operating expenses on a cash basis were A$13.00 billion, exceeding the estimated A$12.86 billion.
  • Total revenue generated was A$28.29 billion.
  • The net interest margin reported was 2.08%.
  • CBA’s cash profit amounted to A$10.25 billion, closely aligning with the A$10.26 billion forecast.
  • Retail banking services contributed A$5.40 billion to the cash profit.
  • Business banking services generated A$4.09 billion in cash profit.
  • Institutional banking and markets produced a cash profit of A$1.22 billion.
  • The corporate center and other operations contributed A$1.66 billion to the cash profit.
  • The overall cash profit from continuing operations was A$10.25 billion, slightly below the expected A$10.26 billion.
  • The investment community’s sentiment includes 0 buy ratings, 2 hold ratings, and 14 sell ratings for CBA.

Commonwealth Bank of Australia on Smartkarma

Commonwealth Bank of Australia (CBA AU) is under the watchful eyes of independent analysts on Smartkarma, a reputable investment research platform. Gaudenz Schneider recently shared insights on CBA AU, highlighting its approach to oversold territory with limited upside potential. Schneider proposes an options strategy tailored for range-bound trading, offering a defined risk/reward profile for investors. The actionable trade idea revolves around key support and resistance levels, aiming for a maximum return within a specific time frame.

On the contrary, Nico Rosti takes a bearish stance on CBA AU’s outlook amid concerns over inflated passive inflows and potential net interest margin (NIM) pressures. Rosti notes the stock’s significant surge since November 2023, driven primarily by passive-inflows, raising valuation implications. With expectations of rate cuts and NIM compression in the near future, Rosti warns of limited rally potential for CBA AU despite short-term bullish signals. FNArena also provides a global perspective on the latest developments surrounding Commonwealth Bank of Australia, adding to the diverse analyst coverage on Smartkarma.


A look at Commonwealth Bank of Australia Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth3
Resilience3
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on Smartkarma Smart Scores, the long-term outlook for Commonwealth Bank of Australia appears positive. The company shows strength in key areas such as momentum, with a score of 4, indicating a promising trend in performance. Additionally, Commonwealth Bank of Australia has solid scores in dividend, growth, and resilience, all of which suggest a stable and growing business model. While the value score is not the highest, the overall outlook for the company seems to be on a positive trajectory.

Commonwealth Bank of Australia is a leading provider of banking, life insurance, and related services catering to individuals, small businesses, and medium-sized commercial enterprises. The Bank offers a wide range of financial products and services, including corporate and general banking, international financing, institutional banking, stock broking, and funds management such as superannuation products. With its diversified service offerings, Commonwealth Bank of Australia maintains a strong position in the financial services industry, supported by its overall positive Smartkarma Smart Scores.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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