ASX Share rice
Fri 14 Aug 2020 - 11:29:pm (Sydney)

CBA Share Price

COMMONWEALTH BANK OF AUSTRALIA.CBABanks

CBA Company Information

Name:

Commonwealth Bank of Australia

Sector:

Financial Services

Industry:

Banks—Diversified

GIC Industry:

Banks

GIC Sub Industry:

Diversified Banks

Address:

Tower 1 Sydney Australia 2000

Phone:

61 2 9378 2000

CEO, MD & Exec. Director:

Mr. Matthew Comyn

Chief Financial Officer:

Mr. Alan Docherty

Chief Information Officer & Group Exec. of Enterprise Services:

Mr. Pascall Boillat

Group Exec. of HR:

Ms. Sian Lewis

Chief Operating Officer of Wealth Management:

Mr. Michael John Venter

Company Overview:

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. It offers retail, premium, business, and institutional banking; and funds management, insurance, and share-broking products and services. The company operates through five segments: Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, New Zealand, and International Financial Services and Corporate Centre. It offers transaction and savings accounts, term deposits, personal and business loans, credit cards, insurance products, international payment, and private banking services, as well as home, car, and personal loans. The company also provides advisory services for high net worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and merchant, international and foreign exchange, and risk management services. It operates through 1,118 branches and 3,542 ATMs. The company was founded in 1911 and is based in Sydney, Australia.

CBA Share Price Information

Shares Issued:

1.77B

Market Capitalisation:

$127.03B

Dividend per Share:

$1.96

Ex Dividend Date:

2020-08-19

Dividend Yield:

2.73%

Revenue (TTM):

$21.41B

Revenue Per Share (TTM):

$12.11

Earnings per Share:

$5.232

Profit Margin:

0.45

Operating Margin (TTM):

$0.49

Return On Assets (TTM):

$0.01

Return On Equity (TTM):

$0.11

Quarterly Revenue Growth (YOY):

-0.147

Gross Profit(TTM):

$21.41B

Diluted Earnings Per Share (TTM):

$5.232

QuarterlyEarnings Growth(YOY):

-0.148

CBA CashFlow Statement

CashFlow Date:

2020-06-30

Change To Liabilities:

$0

Total Cashflow From Investing Activities:

$3.70B

Net Borrowings:

$-24,516,000,000

Total Cash From Operating Activities:

$-30,354,000,000

Other Cashflow From Investing Activities:

$95M

Capital Expenditures:

$0

CBA Income Statement

Income Date:

2020-06-30

Income Before Tax:

$10.48B

Net Income:

$9.63B

Other Operating Expenses:

$10.93B

Interest Expense:

$11.55B

Income Tax Expense:

$3.02B

Total Revenue:

$-11,552,000,000

CBA Balance Sheet

Balance Sheet Date:

2020-06-30

Intangible Assets:

$1.66B

Total Liabilities:

$0.94T

Total Stockholder Equity:

$72.01B

Total Assets:

$1.01T

Common Stock:

$38.13B

Retained Earnings:

$31.21B

Other Liabilities:

$21.02B

Good Will:

$5.28B

Other Assets:

$782.45B

Cash:

$35.85B

Property - Plant & Equipment:

$5.60B

Net Tangible Assets:

$65.06B

Long-Term Investments:

$134.30B

Long-Term Debt:

$25.67B

CBA Share Price History

CBA News

12 Aug, 2020
Commonwealth Bank of Australia (CBA) slashed its annual dividend by more than half to the maximum payout allowed by regulators, even as bad loan provisions amid the coronavirus pandemic drove its annual cash profit below market expectations. The payout by Australia's largest lender is expected to set the pace for other banks in the country, where dividends are closely watched as around 8% of the population manage their own retirement income. CBA declared a final dividend of A$0.98 ($0.6988) per share, versus last year's A$2.31, given the regulatory order for banks to pay out less than half their profit.
30 Jul, 2020
23 Jul, 2020
(Bloomberg Opinion) -- It’s not only gold that glitters. Since touching its weakest level in more than a decade in March, silver has doubled to a seven-year high of almost $23 an ounce. Partly, it’s a rally fueled by the same low-yield, weak-dollar haven dynamic that has pushed bullion to within spitting distance of a record. Investor demand is booming and silver — which is the best conductor of electricity — has industrial uses, too. Short-term supply, meanwhile, has been dented by pandemic-related closures. The metal can keep shining.Silver tends to loosely track gold. Like the yellow metal, it is benefiting from investors’ jangled nerves, with the global economic recovery looking slow and further coronavirus outbreaks almost certain. Rock-bottom borrowing rates have also reduced the opportunity cost of holding a non-interest-bearing asset, and there’s no sign of a change. Investor demand is responsible for much of this accelerated rally. This year alone, exchange-traded funds have increased their gold holdings by more than a quarter to surpass 106 million ounces, according to data compiled by Bloomberg, taking the total value to almost $200 billion. Silver holdings have climbed 40%, to more than 850 million ounces.  In the futures market, net managed money long positions are climbing back toward levels seen at the end of 2019. The Silver Institute, meanwhile, estimates retail bullion coin sales jumped by an estimated 60% in the first half from a year earlier. Speculative interest in China, which helped drive silver to all-time highs in 2011, is also showing signs of life.Demand from other quarters is less dramatic, though still encouraging. It helps that silver has a range of applications, unlike gold, which is generally too expensive for industrial uses. Not all are growing: Appetite from photography has ebbed since the advent of the digital camera, while the consumer electronics and automotive sectors have suffered from the squeeze the pandemic has put on households. Yet silver jewelry is expected to drop less than gold, given its relative affordability. Solar panels, meanwhile, should benefit from green-tinged recovery efforts — photovoltaic cells account for about a fifth of silver’s industrial demand. China is the world’s biggest solar power market, and will increase installations this year, despite the slow start to 2020. The country’s silver imports have been running above average. Longer term, the advent of next-generation telecoms technology will help, too.All the while, supply has been severely disrupted by coronavirus closures and other containment measures, particularly in Peru and Mexico. The Silver Institute earlier this month put the expected drop in mine production at 7% for 2020, even after recent restarts. The issues go beyond the pandemic. Output has been trending lower in recent years, with large primary-silver mines aging and new ones holding less of what is one of the world’s rarest metals. Silver is usually a byproduct, meaning most production comes from mines that primarily dig out zinc, lead, copper or gold. That’s good news for miners like Mexico’s Fresnillo Plc, with large primary silver operations. Despite marginal increases expected from 2021, rivals can’t simply crank up production in response to higher prices. At a time of tight exploration budgets, a little shiny silver can’t make up for plenty of lackluster zinc.Comparing silver with gold suggests the rally has further to run. The silver-gold price ratio, currently around 1.2%, is edging closer to its long-term average of around 1.5%, according to analyst Vivek Dhar at Commonwealth Bank of Australia. He points out previous sharp run-ups in silver have seen the ratio climb to 2.2% or 2.4 before retreating%. That leaves room for silver to keep shining. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
21 Jul, 2020
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Commonwealth Bank of Australia and other ratings that are associated with the same analytical unit. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
30 Jun, 2020
01:39
Yahoo! Finance
By Bryan Wong
11 Jun, 2020
10:24
Yahoo! Finance
Earlier this week investment bank Goldman Sachs (NYSE:GS) predicted gold climbing to $1,800 per ounce on a 12-month basis. That would be a new high for the year, above the $1,788.80 reached at the beginning of April, which was also the highest since 2012.
04 Jun, 2020
(Bloomberg Opinion) -- When a bank admits it may have transferred money to the Philippines for customers suspected of sexually exploiting children, you’d better hope it has a good excuse.That's not the case with Australia’s oldest lender, Westpac Banking Corp. A review the bank commissioned into 23 million breaches alleged by the country’s anti-money laundering agency Austrac concluded Thursday with a slap on the wrist.“While the compliance failures were serious, the problems were faults of omission,” Chief Executive Officer Peter King said in a statement released with the report. “There was no evidence of intentional wrongdoing.”That’s not good enough. We set banks far too low a bar if our standard is only that they don't knowingly aid and abet criminal activity. Ensuring that banks don’t unwittingly facilitate such breaches is precisely why they have compliance departments. It’s hardly a defense to admit that Westpac’s internal risk management was so threadbare that it failed to pick up obvious shortcomings over a period of years.Westpac’s review points to some very zeitgeisty explanations for its failure: that the alleged breaches happened at a time of rapid technological change; that regulators are more focused on financial crime; that the public has higher standards for companies these days; and that corporate boards are now expected to be more interventionist.Looking at the details of the cases, though, many of the places Westpac fell down would have been familiar to bankers as far back as the Medicis. Managers didn’t know enough about who their customers were, or scrutinize the patterns of their payments to detect suspicious activities. They didn’t look deeply enough into the relationships of their correspondent banks either, exposing themselves to risks one step removed via their banking relationships. And the board failed to interrogate and closely examine these activities.These aren’t novel mistakes driven by the dizzying speed of life in the 2010s — they’re failures in the compliance culture that should be at the core of operations for anyone in the business of lending money.Compliance officers have historically been resented within banks, because they’re seen as a cost center whose job is to stop their colleagues from making money. Before the 2008 financial crisis, the risk of a fine from regulators seemed remote, while the reward of revenues from sailing close to the wind was temptingly close. No one wanted internal auditors sticking their noses in and preventing profitable activities or setting up costly reporting protocols. That function is nonetheless crucial if we’re to maintain integrity in our banking system.For all the report’s talk about sins of omission, weak compliance by Westpac (and its larger peer, Commonwealth Bank of Australia, which paid an A$700 million penalty, or roughly $483.2 million, in 2018 to settle a separate money-laundering case with Austrac) wasn’t an accident.The way to improve a bank’s compliance capability isn’t a mystery. You simply need to hire and pay more compliance officers and give them more authority throughout the organization, something that banks in most rich countries did after the collapse of Lehman Brothers Holdings Inc. Australia’s lenders kept partying like it was 2007.Indeed, the increasing sums that Westpac has been spending on compliance in recent years, eating into each profit release, are evidence that the lucrative go-go years weren’t generated by any special genius, other than the choice to turn a blind eye to weak internal regulation.Take a look at the cost-to-income ratios of Australian banks, a decent measure of how much cash they’re paying out on staff and systems in relation to their revenues. Only in Singapore, Hong Kong, Taiwan, Sweden and Norway do large lenders manage to provide their services at so little internal cost. One way of looking at those figures is to assume that banks in those countries are simply more efficient than elsewhere — but compliance is difficult and expensive, and if you want it done well you may find that your profits aren’t what they once were.Westpac has promised to turn over a new leaf, just as Commonwealth Bank did after settling its Austrac case.“We completely accept that some important aspects of Westpac’s financial crime risk culture were immature and reactive,” King wrote, “and we failed to build sufficient capacity and experience in some important areas.”Let’s hope so — but the equity market reaction gives cause for concern. With the S&P/ASX 200 index barely up on the day, Westpac shares jumped as much as 5.4% at the open. If management has truly grasped the nettle on their compliance controls, shareholders are going to have to get used to that spending eroding their profits far into the future.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
02 Jun, 2020
Zip Co Ltd said on Tuesday it will buy out buy-now-pay-later (BNPL) firm QuadPay in a stock deal valuing the New York-based company at $269 million, as the Australian firm looks to tap the fast-growing U.S.-market where its rivals are thriving. Larger rivals like Afterpay Ltd and Sweden's Klarna have flourished in the United States, building on the BNPL sector's growing popularity, especially with millennials, as it allows consumers to buy products in interest-free installments. Tencent Holdings Ltd recently scooped up a 5% stake in Afterpay, just months after Ant Financial, an affiliate of Alibaba Group Holding Ltd, bought a small stake in Klarna - which already counts Commonwealth Bank of Australia and rapper Snoop Dogg as backers.
01 Jun, 2020
(Bloomberg Opinion) -- Brazil has just overtaken Russia to claim second spot in the global tally of coronavirus cases, behind only the U.S. The epidemic is threatening to disrupt supply in the world’s second-largest exporter of iron ore as China’s steel demand recovers, driving prices above $100 a metric ton for the first time since August. The scale of the unfolding health  cataclysm suggests they won’t reverse soon, even if the rally looks unsustainable.Last year was unusually dramatic for iron ore. A fatal dam collapse took out almost a quarter of Brazilian miner Vale SA’s original 2019 target of 400 million tons. Weeks later, a tropical cyclone in Australia dented global output further. The supply impact then was immediate and clear, and prices responded accordingly. This year’s surge has been almost as much about fear of disruption as about current supply, as an outbreak at Vale’s Itabira complex showed last week. Vale said it obtained an injunction to continue work at the operation after prosecutors sought to temporarily shut down activities for coronavirus testing.Demand is helping to raise the temperature. Iron ore is highly dependent on China — which accounts for over two-thirds of global imports — and has benefited from the restart there more markedly than base metals. Chinese industrial output recovered strongly in April, port stockpiles have been coming down, steel inventories have declined and mill margins look healthy enough. Steel industry purchasing managers’ index numbers for May confirm the trend. That helped push physical spot ore to $101.05 a ton Friday, while futures in Singapore are trading just shy of $100.China’s appetite will ease, though, and possibly before the rest of the world picks up. As Commonwealth Bank of Australia analyst Vivek Dhar points out, China significantly increased the annual local government special bond quota this year, usually used to fund infrastructure — but only 40% is now available for the remaining seven months of 2020. And while the National People’s Congress last month talked up infrastructure plans, it was the measured approach most had expected, not a repeat of the binge spending of 2008. So there’s reason for analysts, including Bloomberg Intelligence, to point to cooler prices in the year ahead.In any case, demand hasn’t been the real driver here, supply has. For now, the market has no answer to the key questions of when Vale can get back to pre-disaster production targets, and what the epidemic means for Brazil. On Sunday, President Jair Bolsonaro joined supporters protesting against Congress and the Supreme Court in Brasilia, stoking concerns of a constitutional crisis to compound the health disaster.In the short term, it’s hard to be optimistic. Bolsonaro has repeatedly dismissed the seriousness of the illness and appeared maskless over the weekend, despite local regulations. Brazil already has the fourth-highest death toll globally, with more than 29,000 fatalities — five times where it was a month ago. More worrying for the iron-ore market is how fast the illness is spreading outside big cities, a problem even if mining operations are considered essential, and exempt from lockdowns for now. That could change. Both the rate of infection per person and fatalities per inhabitant have been highest in the impoverished north, which is home to Vale’s giant Carajas operation. The nearby 200,000-strong town of  Parauapebas alone, where Vale has contributed testing, tracing and medical help, has more than 2,500 cases as of Sunday .It is noticeable that both Australia’s iron-ore majors, constrained by bottlenecks, and China have given signs of expecting more disruption in the future. China is preparing to allow state-owned companies to develop the giant Simandou deposit in Guinea. Down Under, miners are considering alternatives, too. BHP Group has indicated it is looking at options to increase export capacity at Port Hedland, in Western Australia.These initiatives will take time to have an impact. Increased supply and lower prices are coming eventually — just not soon. Iron-ore bears take note.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
13 May, 2020
Kohlberg Kravis Roberts (KKR) agreed on Wednesday to buy a controlling stake in Commonwealth Bank of Australia's (CBA) wealth management unit, the latest retreat by the nation's biggest lenders from the sector following a series of misconduct scandals.The American private equity giant will pay A$1.7 billion (US$1.1 billion) in cash for a 55 per cent stake in the Colonial First State (CFS) unit, which had A$135 billion in assets under administration at the end of April. The deal represents a multiple of 15.5 times the business's net profit."CFS is one of the most respected providers of investment and superannuation services in Australia with a highly regarded product and service offering to members and advisers," Scott Bookmyer, head of KKR Australia, said in a statement. "Partnering alongside CBA, we look forward to accelerating CFS's transformation and further strengthening its market position to deliver long-term benefits to its member base."CBA acquired Colonial in 2000 for A$9.4 billion.The transaction is subject to regulatory review, including by Australia's Foreign Investment Review Board, and is expected to be completed in the first half of 2021.The sale is the latest after a Royal Commission report last year found a culture at the nation's biggest banks that put profit and bonuses ahead of serving their customers, including charging fees to the accounts of clients who had died and widespread mis-selling of products. The report, released in February 2019, led to a series of executive resignations, billions of dollars in compensation to victims and regulatory reforms.Following the report, the nation's biggest banks have pulled back from wealth management.CBA sold its Colonial First State Global Asset Management business to Japan's Mitsubishi UFJ Trust and Banking Corporation for A$4.2 billion in August.The transaction also comes at a challenging time for banks globally.The coronavirus pandemic has infected more than 4.2 million people worldwide and weighed heavily on the global economy as businesses have been forced to shut down for months to stem the spread of the virus that causes the disease Covid-19. The pandemic has forced banks to set aside tens of billions of dollars for bad loans, while historically low interest rates weigh on their bottom lines.The Australian lender said the KKR deal is consistent with its strategy to focus on its core banking business and would simplify its offerings. KKR and CBA plan to undertake a "significant" investment programme in the business following the deal."We are confident that together with KKR, we can provide CFS with an increased capacity to invest in product innovation, new services and its digital capabilities," CBA chief executive Matt Comyn said in a news release.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
08 May, 2020
(Bloomberg Opinion) -- These are the most consequential months in the Reserve Bank of Australia's 60-year life, but the economic downturn of historic proportions means nobody is celebrating this diamond jubilee.   So deep is the damage inflicted by the Covid-19 pandemic that the central bank's greatly enhanced profile in the economy and markets will be with us for years. That's consistent with a tremendous expansion in the role of the state as leaders Down Under endeavor to simultaneously restore growth and contain infections. The combative relationship between the federal and powerful provincial governments has given way to national priorities, blurring distinctions between responsibilities. In effect, the modus operandi of what was once seen as an economic nirvana has undergone a revolution. Projections suggest much of this is warranted; that makes it no less momentous. Gross domestic product may shrink 10% before bouncing in the second half of the year, the central bank warned Friday in its quarterly outlook. The late growth spurt won't be enough to prevent an annual retreat of 6%. Australia’s GDP hasn't gone south by anywhere near that much since the RBA opened its doors in early 1960. Prior to the central bank’s inception, monetary policy was conducted by the government through what’s now the publicly traded Commonwealth Bank of Australia. The last recession produced a decline of 1.1% in 1991, which seemed severe living through it. The growth streak that followed has gone down in global economic folklore. Buoyed by closer trading ties with China and an unparalleled resources boom, Australia even skated through the Great Recession without two consecutive quarters of contraction. That’s over. The unemployment rate will climb to 10% over coming months and still exceed 7% at the end of next year, under the RBA’s main scenario. It was 5.1% at the end of 2019. The profound shock of the pandemic quickly pushed the bank to cut borrowing costs to almost zero and undertake quantitative easing to suppress the yield on government bonds. Governor Philip Lowe signaled that ultra-easy policy will remain until the country is well down the recovery road. The RBA is also purchasing bonds sold by state governments, saying Tuesday that it will further expand the range of securities eligible for its market operations to include investment-grade debt issued by non-bank companies. While the bank makes its monetary-policy decisions independently, this effectively leaves the six state and two territory administrations more dependent on national authorities and extends the reach of the public sector into corporate life. The former diminishes, at least temporarily, pretensions that local administrations have of separation from the center. The latter is a step toward reversing the intellectual and policy thrust of successive governments since the 1990s, when assets like Qantas Airways Ltd. and Telstra Corp. were unloaded.This rebellion against precedent extends to the political process. Prime Minister Scott Morrison has created a so-called national cabinet to deal with Covid-19. The team of rivals brings state premiers and chief ministers into the federal sanctum, meeting to co-ordinate on business and school closures and prospective re-openings, as well as hospital operations. During the emergency, this elite group has become the core Australian decision-making body. Several of the regional premiers are from the Australian Labor Party, which opposes Morrison’s conservative bloc in the federal parliament. To appreciate the radicalism, imagine Donald Trump bringing New York’s Andrew Cuomo and California’s Gavin Newsom, both Democrats,  to the cabinet table in Washington. An effort at seamless decision making addresses the needs of the moment. The public rightly has little time for jurisdictional disputes, even through the constitution gives states a lot of authority. Critics contend that the new set-up is eroding democracy: The national cabinet makes decisions, yet is accountable to no single legislature. Such unity of purpose likely has a finite life. At some point, the electoral cycle  will resume. Templates for new national political and economic structures now exist that would have unthinkable a year ago. Catastrophic bushfires over the Christmas-New Year holiday period midwifed a big federal intervention in firefighting, an area states have historically dominated, and led to the biggest military deployment since World War II.   In the monetary arena, the ground has been laid for long-term policy activism and rock-bottom rates with potentially far-reaching consequences. Consumers, businesses and governments now know the RBA will backstop them in ways few contemplated not so long ago. And the longer Lowe and his successors keep rates low, the greater the risk of a backlash should they have to change course and begin withdrawing stimulus — an antipodean taper tantrum. Not the anniversary year the RBA anticipated.  This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously he was executive editor of Bloomberg News for global economics, and has led teams in Asia, Europe and North America.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
05 May, 2020
Australia's big banks have warned that credit losses from the country's first recession in three decades will top A$17 billion ($10.96 billion), but analysts predict the bill for the coronavirus lockdown will be higher - perhaps more than double. If losses spike, there could be more capital raisings and dividend deferrals at the "Big Four", which together fund 80% of Australia's loans, impeding their ability to plough money into the economy as it recovers from the virus that has infected 6,800 people and killed 96 in the country, analysts warn.
04 May, 2020
(Bloomberg Opinion) -- While their peers in other countries weathered a season in hell after the 2008 financial crisis, Australian banks partied.Spared the recession that devastated lenders elsewhere, valuations soared to as much as three times book value — extraordinary levels when most banks in developed countries were trading at a discount to book.At one point in 2011, all of the country’s big four banks (Commonwealth Bank of Australia, Westpac Banking Corp., National Australia Bank Ltd. and Australia & New Zealand Banking Group Ltd.) were worth more than Bank of America Corp. in terms of market capitalization. Now, the U.S. lender is worth more than all four — put together.The road to the dismal present has been paved with money-laundering scandals, government inquiries, super-taxes, a housing market downturn and of course the coronavirus, but it’s another factor that has been most crucial: dividends.Bank valuations, after all, aren’t a disinterested vote on the credit quality of a company. Instead, they’re shareholders’ best guess of the current value of future payouts, adjusted for the risk that the share price itself may rise or fall.That’s been particularly important in Australia, thanks to the outsize influence of individuals managing their own retirement savings through so-called self-managed superannuation. In most of the world, fund managers focused on capital growth dominate the stock market, to the extent that many tech companies treat paying cash back to shareholders as a failure of imagination. In Australia, the retirement savers who make up a fifth of the stock market prize a steady and stable income, so generous dividend-payers like the country’s banks have consequently done well.Even when its valuation peaked at three times book in 2015, Commonwealth Bank, the biggest of the four, was still paying out dividends equivalent to more than 6% of its share price. Australian banks were offering all the income security of owning a bond, but with equity-style returns. There was just one problem. Much though they may have behaved like bonds to their investors, Australian bank shares were equity all along — and with the party finally ending, it’s shareholders who are ultimately taking the hit. On Monday, Westpac joined ANZ in deferring its decision about whether to make a payout this year. NAB went one step further last week, cutting its payout by about two-thirds and tapping shareholders for cash by selling A$3.5 billion ($2.2 billion) in new stock.It’s a sign of how crucial payouts have become to Australian bank shareholders that even with an unemployment rate tipped to hit 10% this year, both Westpac and ANZ are presenting their moves as delayed decisions rather than outright cancellations. Even in a crisis, giving up the gospel of dividends risks breaking the implicit contract between management and shareholders that’s supported valuations (and paid for executives’ Maseratis) for a generation.The trouble is, shareholders are already voting with their feet. Price-book valuations have slumped to positively European levels; only Commonwealth Bank is now valued at a premium to its net assets. Unlike other countries, which have spent more than a decade deleveraging, Australian household debt was at record levels relative to income just before the coronavirus struck.As rising unemployment and falling property prices eat into borrowers’ ability to repay, investors are (rightly) making the assessment that the first call on banks’ cash for the foreseeable future is likely to be funding defaulted loans. Next will be fines, like the A$1.06 billion Westpac set aside Monday for dealing with a money-laundering case.The silver lining is that those plunging share prices are making dividends, in isolation, look more attractive than ever. If the coronavirus downturn proves less drastic than feared and Westpac ends up paying out full-year cash in line with last year’s, it would be yielding around 11% at current share prices — not bad at a time when its best one-year term deposit account is paying 1.2%.It’s a mark of how bad things have gotten for Australian banks that even the perennial promise of payouts isn’t enough to tempt shareholders back this time.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
22 Apr, 2020
AUD/USD Current Price: 0.6322 * Australia released an upbeat preliminary estimate of March Retail Sales. * Commonwealth Bank PMI and preliminary trade figures to be out this Thursday. * AUD/USD neutral-to-bullish as long as it holds above 0.6250.The AUD/USD pair is marginally higher daily basis, trading ahead of the Asian opening in the 0.6320 price zone. The pair peaked at 0.6352 as Australia published a preliminary estimate of March Retail Sales, which rose 8.2% MoM, much better than the previous 0.5%. The Australian Bureau of Statistics decided to release preliminary estimates to provide a better picture of how the economy is performing through the pandemic.Early Thursday, the country will unveil a preliminary estimate of the Trade Balance. It will also be the turn of preliminary estimates of the April Commonwealth Bank PMI, expected to have contracted further.AUD/USD Short-Term Technical Outlook The AUD/USD pair has posted a higher low and a higher high daily basis, usually a sign of further gains ahead. Nevertheless, the 4-hour chart shows that the pair is unable to advance beyond a mild-bearish 20 SMA, while holds above its 100 and 200 SMA. Technical indicators, in the meantime, remain within neutral levels, without directional strength.Support levels: 0.6295 0.6250 0.6210 Resistance levels: 0.6330 0.6375 0.6400Image sourced from PixabaySee more from Benzinga * EUR/USD Forecast: Under Selling Pressure Near 1.0800 * AUD/USD Forecast: Turning Lower, The Decline Could Accelerate Once Below 0.6250 * EUR/USD Forecast: Buyers Are Defending The Downside Around 1.0800(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
24 Mar, 2020
Evidence of the devastation wreaked on the global economy by the coronavirus pandemic mounted on Tuesday as activity surveys for March from Australia and Japan showed record falls, with surveys in Europe and the United States expected to be just as dire. After an initial outbreak in China brought the world's second largest economy to a virtual halt last month, an ever growing number of countries and territories have reported a spike in infections and deaths in March. "The coronavirus outbreak represents a major external shock to the macro outlook, akin to a large-scale natural disaster," analysts at BlackRock Investment Institute said in a note.
19 Mar, 2020
Commonwealth Bank of Australia cut interest rates for small business and household customers on Thursday after the country's central bank cut rates for a second time this month and ventured into quantitative easing to tackle the impact of the coronavirus outbreak. CBA cut rates on existing cash-linked small business loans by 100 basis points, and one-, two- and three-year fixed home loan rates by 70 basis points for owner occupiers.

CBA Dividend Payments

EX-Date Dividend Amount
2010-02-14$1.2000
2010-08-16$1.7000
2011-02-13$1.3200
2011-08-15$1.8800
2012-02-19$1.3700
2012-08-20$1.9700
2013-02-17$1.6400
2013-08-19$2.0000
2014-02-16$1.8300
2014-08-19$2.1800
2015-02-16$1.9800
2015-08-18$2.2200
2016-02-15$1.9800
2016-08-17$2.2200
2017-02-21$1.9900
2017-08-16$2.3000
2018-02-13$2.0000
2018-08-15$2.3100
2019-02-12$2.0000
2019-08-14$2.3100
2020-02-18$2.0000

CBA Dividends (last 11 Years)