Commonwealth Bank (CBA) shares rally on 1Q
CBA +0.96%: 1Q numbers out for the biggest of the Big 4, CBA shows it remains the quality pick of the banks with a strong start to FY24. Cash NPAT of $2.5b was around a 3% beat to consensus expectations championed by what looks like better-than-expected Net Interest Margins (NIM) despite some upward pressure on deposit pricing. Costs were up 3%, in line with expectations, while credit quality remains strong with a bad debt charge of just $198m or 9bps. Capital remains in a strong position with CET1 of 11.8% despite the 2H23 dividend impact of 86bps.
- CBA posted the best numbers of peers this period, on track to beat expectations at the HY result early next year.