Investors will be keeping a close eye on the big bank’s upcoming half year results.
The post Own CBA (ASX: CBA) shares? Here’s what’s happening with the big bank this week appeared first on The Motley Fool Australia. –
CommBank to release half year results on 9 February
Net interest margin could fall below expectations
Why analysts are watching Omicron’s impact
How Omicron is impacting CBA’s Household Spending Intentions Index
CBA shares finished Friday’s trading session down 1.26% while the ASX 200 slipped 2.27%.
That’s today’s price action.
Below we look at what’s been happening with the big bank this week.
CBA shares in the news this week
Investors will be keeping a keen eye on CBA shares on 9 February. That’s when the big bank reports its half year financial results.
With a lot riding on those results, analysts are offering their forecasts for ASX investors looking to get positioned early.
Among those is Morgans.
As my Foolish colleague James Mickleboro noted earlier today, the broker expects that CommBank won’t reach market expectations. It has a reduce rating on CBA shares with a price target of $74. That’s well below the current $97.53 per share.
Morgans believes CBA shares could come under pressure, as the broker expects its net interest margin (NIM) to come in at 1.86%. The consensus forecast is 1.91%.
Morgans is also keeping a close eye on how the Omicron variant could impact the bank’s business, saying, “By way of outlook for asset quality, we will be particularly interested to hear about what CBA is seeing on the SME front with the spread of Omicron.”
CommBank on Omicron
The CommBank Household Spending Intentions Index – which measures Aussie consumer spending – leapt by 2.5% in December. The gains were largely driven by big gains in the travel, transport and retail sectors when the Delta variant restrictions were wound back.
However, the rise of Omicron looks to be putting a dent in consumer spending.
According to CBA senior economist Belinda Allen:
The Omicron variant, which has led to a surge in COVID cases late in December and into January, is an important development to watch. It is impacting the demand and supply side of the Australian economy. We can see from our high frequency credit and debit card data there does appear to be a fall in spending in January, with spending on services more impacted than goods spending.
Lawsuit moves forward
CBA shares were in the national news again today, after the Finance Sector Union filed a suit in Federal Court. The union says that CommBank didn’t allow approximately 3,000 retail staff to take their contractual 10-minute rest breaks, netting the bank some $45 million over the last 6 years.
A CBA spokesperson said the bank will carefully review the claim once it is served.
How have CBA shares been performing?
Despite the recent selling, CBA shares remain up 14% over the past 12 months. By comparison, the ASX 200 has gained 5% over that same time.
The post Own CBA (ASX: CBA) shares? Here’s what’s happening with the big bank this week appeared first on The Motley Fool Australia.
Should you invest $1,000 in CBA right now?
Before you consider CBA, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CBA wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.