Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Stock of the day: Commonwealth Bank

Commonwealth Bank of Australia reported a $9.8 billion cash profit, surpassing market expectations despite a 2% decline from the previous year. Analysts debate the bank's high valuation and future growth prospects.

Video poster image

[AI generated]

This video was created on 14 August for IG audiences by ausbiz.

Stock of the day: Commonwealth Bank (ASX: CBA)

Mixed results raise questions on valuation

Commonwealth Bank of Australia (CBA) takes the spotlight following its latest earnings report. The bank reported a cash profit of $9.8 billion for the full year, marking a 2% decline from the previous year but still surpassing market expectations. Despite the dip in profit, driven by inflationary pressures on operating expenses, CBA’s share price rose 3% as investors responded positively to the result.

Strong dividend amid mixed financials

CBA announced a final dividend of $2.50 per share, bringing its full-year dividend to $4.65, fully franked. This payout exceeded forecasts and was well-received by retail investors.

However, analysts have pointed out that while CBA continues to outperform its peers, its valuation, trading at over 23 times earnings, raises concerns. The bank’s ability to maintain its margins and navigate rising expenses has been commendable, but questions linger about the sustainability of such a high multiple given the modest growth in earnings and revenue.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Discover how to trade the markets

Learn how indices work – and discover the wide range of markets you can trade on – with IG Academy's free ’introducing the financial markets’ course.

Put learning into action

Try out what you’ve learned in this index strategy article risk-free in your demo account.

Ready to trade indices?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Get fixed spreads from 1 point on FTSE 100 and Germany 40
  • Protect your capital with risk management tools
  • Trade more 24-hour markets than any other provider

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.