What impact has BNPL giant Klarna had on the CBA (ASX:CBA) share price?

Let's take a look at how much value Klarna has added to Commonwealth Bank…

| More on:
A couple standing at a counter in a large retail store taking a bag being handed to them by a sales assistant.

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 has been boosted in the past by its investment in unlisted buy now, pay later giant Klarna.

CBA has recently taken account of the value of its investment, envisioning it to be worth $15 billion more than Square valued Afterpay.

In CBA's full-year results, released to the market yesterday, the bank valued its approximate 5% stake in Klarna at around $2.7 billion. In June 2020, CBA valued the stake at just $506 million.

CBA's new valuation means it interprets Klarna to be worth approximately $54 billion – a figure it believes to be conservative.

So, how has Klarna affected Commonwealth Bank's share price over the years? Let's take a look.

Klarna's impact on CBA

In January 2020, CBA upped its stake in Klarna to around 5%. In return it received a 50% interest in Klarna Australia and New Zealand.

Klarna officially launched in Australia on 30 January 2021 and in New Zealand on 4 May 2021.

CBA had previously paid $100 million for 1.8% of the BNPL giant. The additional 3.7% cost the bank $200 million.

The CBA share price gained just 0.9% on the bank's increased investment and 0.8% when it launched in New Zealand. Clearly, shareholders weren't aware of its growth capabilities. Nowadays, Commonwealth Bank's investment in Klarna is known to have been an absolute bargain.

The net return on CBA's investment is currently around $2.4 billion – an 800% return on investment.

On the day the Commonwealth Bank upped its stake in Klarna, the CBA share price was $85.44. It has since gained nearly 26% to trade at $107.41 at the time of writing.

That means, using the number of outstanding shares available in the bank today, its market capitalisation has increased by $402 million in that time. That is a far greater increase than the growth of CBA's investment in Klarna.

When estimating the value of the BNPL giant, the bank stated it took into account the value of similar listed companies, Square's bid for Afterpay, and a recent capital raise conducted by Klarna in June.

At the time of the capital raise, Bloomberg reported it valued Klarna at US$45.6 billion ($61.8 billion using today's exchange rate).

The CBA share price gained 0.7% the day news broke of Klarna's capital raise.

How has Klarna impacted the CBA share price?

While CBA's investment in Klarna has undoubtably boosted the value of CBA, it's hard to specify how much it has contributed to the bank's valuation.

However, the CBA share price has been growing strongly alongside Klarna's value.

It's gained 28% year to date and 45% since this time last year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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

Woman using a pen on a digital stock market chart in an office.
Bank Shares

Here's the Westpac dividend forecast through to 2027

Let's see what analysts are forecasting for the banking giant.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

Hunting for passive income? Here's everything you need to know about the latest NAB dividend

NAB revealed its interim dividend payout this morning.

Read more »

Three business people look stressed as they contemplate stacks of extra paperwork.
Bank Shares

3 headwinds that could sink CBA shares

A leading expert explains why CBA shares are looking vulnerable.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Bank Shares

NAB share price jumps on solid half year results

Investors have responded positively to the bank's results.

Read more »

A young bank customer wearing a yellow jumper smiles as she checks her bank balance on her phone.
Bank Shares

$5,000 in this ASX200 heavyweight could mean $270 in dividends

This banking giant stands out from the pack in terms of dividend yield. 

Read more »

A man looking at his laptop and thinking.
Bank Shares

Is it time to buy Westpac shares?

The Westpac share price has taken a hit this week. Are the bank’s shares ripe for a rebound?

Read more »

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

Want to bag the next Westpac shares dividend? Better be quick…

Westpac will pay an interim dividend of 76 cents per share next month.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

After its result, what does Macquarie think Westpac shares are worth?

Let's see what the broker is saying about Australia's oldest bank.

Read more »