The Commonwealth Bank of Australia (ASX: CBA) share price is trading 1.4% lower in early afternoon trading. That leaves shares in Australia's biggest bank down 1.2% since the closing bell last Friday.
The CBA share price isn't the only one in the red today.
While the S&P/ASX 200 Index (ASX: XJO) is up 0.01%, the other big four banks are all posting losses as well. That's likely partly driven by losses posted by the top US banks yesterday (overnight Aussie time).
Unless CommBank sees a big late-day rally, this will mark its second day of losses for the week, with shares gaining on Monday, Tuesday, and Thursday.
Image source: Getty Images
Why did the CBA share price fall on Wednesday?
The CBA share price closed down 1.8% on Wednesday, the day the bank's shares traded ex-dividend.
That means anyone buying CommBank shares commencing market open on Wednesday was no longer eligible for the $2.10 fully franked final dividend the bank declared. Investors holding shares before Wednesday can expect that payment to land in their accounts on 29 September.
Generally, a stock will fall on the day it trades ex-dividend, as any new investors won't receive that payment. While its common for stocks to fall by a similar amount to their dividend payout, the CBA share price closed only $1.84 lower on Wednesday.
CommBank's full FY22 dividend works out to $3.85 per share, reflecting a trailing yield of 3.9% at the current price.
Also on Wednesday…
In other news on Wednesday, unlikely to have had a material impact on the CBA share price, CEO Matt Comyn announced a change to the bank's executive leadership team.
Gavin Munroe, currently global chief information officer of wealth and personal banking for HSBC, will take over the role of CBA's group executive, technology and group chief information officer from Pascal Boillat.
Boillat, according to the release, is heading back to the Northern Hemisphere to be closer to his family. Munroe will assume his role commencing 14 November.
Commenting on the executive leadership change, Comyn said:
Gavin is a seasoned financial services technology leader with deep experience driving digital transformations.
Gavin has a proven track record of delivering technology solutions at a global scale, managing and building strong teams, and leading large programs aligned to business strategies and goals.
