Insights

Own CBA (ASX:CBA) shares? Here’s what to look for during reporting season

Here’s what to look for when CBA releases its full year results…
The post Own CBA (ASX:CBA) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia. –

The Commonwealth Bank of Australia (ASX: CBA) share price has been a very positive performer in 2021.

Since the start of the year, CBA shares have risen a sizeable 18%.

So, with its full year results just around the corner, expectations certainly are high for a strong report next month.

What to expect from CBA during reporting season

Investors have been bidding CBA shares higher this year in anticipation of a strong result next month. But just how strong is it expected to be?

According to a recent note out of Bell Potter, its analysts are forecasting a cash net profit after tax of $8.51 billion for the 12 months ending 30 June. This represents a 16.5% increase from a cash net profit after tax of $7.3 billion a year earlier.

Bell Potter also notes that this will mean its second half cash net profit has grown 19% over the first half of FY 2021.

The broker commented: “Our cash NPAT estimates on a continuing basis are increased by up to 20% mainly due to changes in loan impairment expenses (and with this decreasing to 6% in the following year). While we were caught off-guard by the speed of recovery in mainstream banking, we still expect operating income and operating expense growth to result in a 2-3% “Jaws” in the long term.”

The CBA dividend

Also giving CBA shares a boost this year has been optimism over its dividend. Especially given its improved performance and APRA removing dividend restrictions.

The note reveals that Bell Potter expects the CBA dividend to come in at a fully franked $3.34 per share in FY 2021. This comprises a final dividend of $1.84 cents per share and its interim dividend of $1.50 per share.

Based on where CBA shares are currently trading, this will mean a fully franked 3.35% dividend yield.

Are CBA shares in the buy zone?

Bell Potter currently has a hold rating and CBA share price target of $105.00.

Its analysts explained: “The price target is increased by $15.00 to $105.00 as such. CBA’s better dividend prospects in the medium term (yield reaching back to around 4.0% by 2023) and solid recovery in consumer, business and institutional banking may be intact but we have decided to lower the rating from Buy to Hold in the meantime.”

The post Own CBA (ASX:CBA) shares? Here’s what to look for during reporting season 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 nearly 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 May 24th 2021

More reading

ASX 200 Weekly Wrap: Just like that… ASX back to record highs

Why the Commonwealth Bank (ASX:CBA) share price is up 12% in 3 months
Commonwealth Bank (ASX:CBA) shares higher as bank moves into broadband business
CBA (ASX:CBA) share price lags big banks as requests for deferrals surge
Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!