In one of the most-anticipated results this earnings season, CBA will hand down its half-year profits on Wednesday, with the market expecting cash profits of about $3.9 billion from continuing operations, according to consensus estimates cited by Goldman Sachs.
The market is also looking for guidance from chief executive Matt Comyn on CBA’s capital management plans, with some expecting he could signal the bank’s intent to launch a share buyback later this year or next year. With the property market picking up, he said strong demand for mortgages was supporting loan growth, though ultra-low interest rates were likely to squeeze net interest margins - a key measure comparing funding costs with what banks charge for loans.
Shares in CBA, a bellwether for the economy, have rallied by 63 per cent from last year’s March lows. The stock last week closed at $88.64 as investors scaled back their expectations for COVID-19 bad debts. The bank also expanded its market share throughout the pandemic.Tribeca Investment Partners portfolio manager Jun Bei Liu said a key focus for investors would be CBA’s bad debt charges, which are expected to be lower due to the improving economic conditions.
clancyyeates Will be welcomed by the share holders, no doubt.
clancyyeates Without 250 years of uninterrupted foreign migrant settlers, the Australian housing market would have crashed as in the First Nations of Eastern Europe without immigration!