Sydney, February 26, 2026, 17:03 AEDT — Market closed
Commonwealth Bank of Australia slipped 0.79% to finish at A$177.27 on Thursday. Shares have risen roughly 10% since the start of the year, but momentum has faded following a sharp rally in early February.
Why now? Investors are shelling out more for Australia’s biggest banks, with CBA leading the pack. Both Morgan Stanley and Macquarie analysts have flagged CBA’s steep price-to-earnings (P/E) multiple—a typical valuation measure—and cautioned that expectations for further gains keep rising.
The market’s focus is back on rates. January’s inflation numbers out of Australia sent wagers climbing for a Reserve Bank of Australia move in May, with core inflation still sitting above target. That “trimmed mean” gauge—which excludes some outlier price swings—remains stubbornly elevated. Reuters
CBA is doubling down on AI. This week, the bank launched a A$90 million “Future Workforce Program” spanning three years—features include a “Grow Your Career” portal that identifies skills gaps and shows employees potential roles. AI training has already reached north of 30,000 staff, according to the bank. CEO Matt Comyn described the effort as aiming for “transparency and opportunity” as AI picks up traction across the business. CommBank
But those workforce initiatives come as job cuts are also hitting. Comyn told ABC’s 7.30 the bank plans to shed 300 roles, and characterized the effects of AI as “jagged and uneven.” In that same interview, he said CBA was “forecasting one more rate hike in May” before potentially shifting to rate cuts, pending inflation data. ABC News
CBA’s premium has been drawing fresh scrutiny after the bank reported record first-half cash earnings earlier this month, sending the stock up as much as 8.4% that day. “The main highlight … has been the growth in the business bank,” said Michael Haynes, investment analyst at Atlas Funds Management. Australian banks typically lean on “cash earnings” as their preferred profit metric. Reuters
The dividend schedule is catching investor attention as well. CBA is lining up a fully franked interim payout of A$2.35 per share for 2026, with the funds set to hit accounts March 30.
Elsewhere, fresh filings revealed CBA is no longer a substantial holder in mortgage broker Australian Finance Group.
Friday looms with uncertainty: will the stock’s recent dip spiral into a sharper correction, or does it end up just another breather in a market where banks are tightly held and stand in for rate bets?
The Reserve Bank of Australia will announce its next policy decision on March 17, following its March 16–17 meeting.
