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Key points
- CBA shares are trailing the ASX 200 index today
- Tasmania tops the states and territories in economic performance
- CommBank the leading bank for Australian debt capital markets
- Stressed parents turning to BNPL for back-to-school items
The Commonwealth Bank of Australia (ASX: CBA) share price is trailing the broader market rally today.
While the S&P/ASX 200 Index (ASX: XJO) is turbulently moving higher, currently up 2%, CBA shares are up a more muted 1.42% to $95.11 per share.
That's the early afternoon price action today.
Below we look at what the big bank has been reporting this week.
Tasmania leads the charge
On Monday, CBA revealed that Tasmania once again came in as the best economic performer among the states and territories over the past quarter. That made for Tassie's 8th consecutive title win in the CommSec State of the States report.
Craig James, chief economist at CBA's wholly-owned affiliate CommSec, said that Tasmania could face stiff competition from the other states in the year ahead.
"Tasmania has held top position in the performance rankings – solely or jointly – for eight consecutive quarterly surveys," he said. "While it is likely to remain on top in the short-term, much can change over 2022."
CBA is Australia's debt capital markets leader
Later in the week, CBA shares were in the spotlight when the bank reported on Bloomberg data showing it was "the leading bank for Australian debt capital markets in 2021".
In calendar year 2021, CommBank raised $19.7 billion for its clients.
The bank was also the most active provider of syndicated loans in 2021, reporting it had supported 57 deals raising $15.5 billion of funding for its clients.
While all this was happening, the CBA share price was rising and finished the year up 23% for its shareholders.
Looking ahead, CBA's managing director of Global Syndicate, Des Fennell was bullish on 2022:
We anticipate Australian public debt market issuance will grow in 2022, as more domestic financial institutions return to normalised issuance patterns, while the education and public finance sector continues to take advantage of historically low rates.
$2 billion back-to-school splash spurs BNPL intentions
Yesterday, CBA revealed that Aussie parents are looking at spending a combined $2 billion to get their kids set for the new school year.
The 9% year-on-year increase in expenditure works out at $435 for the average family.
And not everyone is planning to hand over cash on the day of purchase.
With 65% of parents saying they'll have difficulty affording everything they need to buy, 58% are planning to break out the credit card or make use of buy now, pay later (BNPL) services.
This trend, CommBank reported, is helping drive demand for its own BNPL product, StepPay:
The popularity of buy now, pay later to manage expenses continues to grow, with over 150,000 customers and 1.5 million transactions on CBA's own buy now, pay later product, StepPay, since its launch in August.
How has the CBA share price been performing this year?
CBA shares have broadly performed in line with the ASX 200 in the new year.
Since the opening bell on 4 January, the ASX 200 is down 8.1% while CBA shares have lost 7.3%.
Based on today's share price, CBA pays a 3.7% dividend yield and this is also fully franked.
