CBA slightly beats estimates

‘Lower for longer’ versus ‘plateauing’ house prices and bad and doubtful debts; these are going to be the issues for all banks heading into FY15 and CBA is no expectation. On first blush the FY14 numbers are, as ever, a class above. 


Key findings

- Cash earnings continue to grow in highly competitive environment
- Margins higher on funding mix as bad and doubtful debt contracts
- Forward expectations cautious as investment in materials and energy slows

Net interest margins even in this highly competitive market have managed to increase to 2.14%, as CBA sees retail funding outpacing expectations and wholesale funding costs falling. This saw the bank’s preferred measure of cash earnings beating the street, if only slightly, as housing demand picked up seeing CBA lending $130 billion in housing and business loans.


Cash profit

Earnings per share


A$8.64 billion


A$8.680 billion

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.