The Commonwealth Bank (ASX:CBA) share price hits new record high

The Commonwealth Bank of Australia (ASX: CBA) share price has made a new all-time high today. Here's why CBA has been on fire this week

| More on:

Should you invest $1,000 in Swoop Holdings right now?

Before you buy Swoop Holdings shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Swoop Holdings 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 may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

CBA share price money laundering asx bank shares represented by large buidling with the word 'bank' on it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Commonwealth Bank of Australia (ASX: CBA) share price is on fire today. CBA shares are currently up 0.72% today, mostly in line with the S&P/ASX 200 Index (ASX: XJO) which is up 0.85%. But it's not CBA's rise today that makes it notable, it's what it has risen to. CBA shares are up to $96.67 a share on the back of this rise, after soaring as high as $97.38 this morning. And that, friends, is the highest level Commonwealth Bank has traded at in history. Not just post-COVID, but ever. The company has a market capitalisation of $171.47 billion at this price.

It's actually quite a momentous occasion. CBA is the largest share on the ASX 200, and the Australian share market by extension. This makes it the largest public company in Australia. And CBA's previous highs had stood for a long time. It was back in March 2015 that CBA first hit $95.92 a share, a level that would be unseen again for 6 years…. until this week. Even before the pandemic struck, CBA had only managed to climb to just under $89 a share.

What is pushing CBA shares to all-time highs?

So what has pushed CBA over the edge? Well, the catalyst appears to have been the ASX bank's third-quarter update, which was released to the markets earlier this week. In this update, CBA reported a cash profit after tax of $2.4 billion for the 3 months to 31 March 2021. That was a 24% increase over the quarterly average over the first half of FY 2021. CBA also reported that its cash reserves were strong, and well within regulatory requirements. As such, CBA also flagged that it's considering further "capital management". This could come in the form of higher dividends down the road, or perhaps share buybacks.

Commonwealth Bank shares could have also been influenced by the 3 other major banks all reporting half-yearly earnings over the past couple of weeks. All 3 of the other banks delivered large increases in profits, as well as major increases to their dividends from 2020 levels (not a hard ask, to be fair).  Another factor that is likely feeding into this performance is the overall health of the Australian economy. Recent unemployment figures have pointed to a storm recovery in place. Additionally, the Federal government has promised to focus on bringing the unemployment rate down to 4.5% in the budget which was delivered this week. As a bank, CBA is leveraged to the overall health of the economy. So all of these developments are good news for CBA by extension.

The CBA share price is now up more than 15% year to date, and 64% over the past 12 months. On the current share price, Commonwealth Bank of Australia is trading on a price-to-earnings (P/E) ratio of 21.5 and a trailing dividend yield of 2.57%.

Motley Fool contributor Sebastian Bowen 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.

More on Bank Shares

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Bank Shares

Guess which big 4 bank preemptively cut interest rates ahead of the RBA's next decision?

This bank has pipped the RBA to the punch.

Read more »

A man closesly watch a clock, indicating a delay or timing issue on an ASX share price movement
Dividend Investing

Little time left to snap up the next dividend from ANZ shares

ANZ shares will pay an interim dividend of 83 cents per share on 1 July.

Read more »

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Bank Shares

Why is the NAB share price tumbling today?

Let's find out why this banking giant's shares are falling today.

Read more »

A woman standing on the street looks through binoculars.
Bank Shares

Here's the latest earnings forecast out to 2029 for Westpac shares

How much could Westpac’s earnings grow in the coming years?

Read more »

Confident male executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office
Bank Shares

CBA is the last big 4 bank to report. What should investors expect based on the other banks?

What can investors expect with the CBA’s upcoming report?

Read more »

The sea's vastness is rivalled only by the refreshing feel of the drinks two friends share as they saunter along its edge, symbolising passive income.
Dividend Investing

Which ASX 200 bank stock pays the most passive income?

What’s the best ASX 200 bank to invest for passive income?

Read more »

Woman with a concerned look on her face holding a credit card and smartphone.
Bank Shares

What price target does Macquarie have on ANZ shares following its result?

Is the broker bullish or bearish on this banking giant? Let's find out.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Dividend Investing

Hoping to bank the next dividend from NAB shares? Better hurry…

NAB shares will pay an interim dividend of 85 cents per share next month.

Read more »