Sydney, February 26, 2026, 17:03 AEDT — Market closed
Commonwealth Bank of Australia shares ended lower on Thursday, closing down 0.79% at A$177.27. The stock is still up about 10% so far this year, but it has started to drift after a strong run earlier in February. (MarketScreener Australia)
Why it matters now: investors have been paying up for Australia’s major banks, and CBA most of all. Analysts at Morgan Stanley and Macquarie have pointed to the bank’s premium price-to-earnings (P/E) multiple — a common valuation yardstick — and warned the bar for fresh gains is getting higher. (Market Index)
Rate expectations are also doing the driving. Australia’s January inflation data pushed up market bets for another Reserve Bank of Australia hike in May, after core inflation stayed above the central bank’s target band; the “trimmed mean” is an underlying measure that strips out some volatile price moves. (Reuters)
CBA, for its part, has been leaning into the AI theme. The bank this week rolled out a A$90 million, three-year “Future Workforce Program”, including a “Grow Your Career” portal that maps roles and flags skills gaps, and it said AI learning had already been delivered to more than 30,000 staff. CEO Matt Comyn said the aim was “transparency and opportunity” as adoption spreads. (CommBank)
But the workforce push is landing alongside cuts. Comyn told ABC’s 7.30 the bank would cut 300 jobs, and he described AI’s impact as “jagged and uneven”; in the same interview he said CBA was “forecasting one more rate hike in May” before an easing cycle, depending on inflation. (ABC News)
The stock’s premium has been in the spotlight since CBA posted record first-half cash earnings earlier this month, using “cash earnings” — an underlying profit measure Australian banks prefer — and the shares jumped as much as 8.4% that day. “The main highlight … has been the growth in the business bank,” said Michael Haynes, an investment analyst at Atlas Funds Management. (Reuters)
Investors also have the dividend timetable on their screens. CBA has flagged a 2026 interim dividend of A$2.35 a share, fully franked, with payment due on March 30. (CommBank)
Away from the AI headlines, filings this week also showed CBA ceased to be a substantial holder in mortgage broker Australian Finance Group. (Intelligent Investor)
Ahead of Friday’s trade, the question is whether the stock’s pullback turns into a deeper reset, or just another pause in a tightly-owned market where banks are treated as a rates proxy.
Next up: the Reserve Bank of Australia’s next policy decision is scheduled for its March 16–17 meeting, with the decision statement due on March 17. (Reserve Bank of Australia)
