Why is the CBA share price taking a tumble on Wednesday?

CBA shares are taking a fall today. Let's find out why.

| More on:
A businessman slips and spills his coffee.

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 sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday at $150.25. In late morning trade on Wednesday, they were changing hands for $148.14 apiece, down 1.4%.

For some context, the ASX 200 is down 1.2% at this same time.

Created with Highcharts 11.4.3Commonwealth Bank Of Australia PriceZoom1M3M6MYTD1Y5Y10YALL6 May 20242 May 2025Zoom ▾Jun '24Jul '24Aug '24Sep '24Oct '24Nov '24Dec '24Jan '25Feb '25Mar '25Apr '25May '25Jul '24Jul '24Sep '24Sep '24Nov '24Nov '24Jan '25Jan '25Mar '25Mar '25May '25May '25100120140160180www.fool.com.au

As for the other big four Aussie bank stocks, National Australia Bank Ltd (ASX: NAB) shares are down 2.2%, and Westpac Banking Corp (ASX: WBC) shares are down 1.9%.

And with Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares trading ex-dividend today, the ANZ share price is down 4.6% at the same time.

With this picture in mind, the CBA share price is outperforming today following the release of the bank's first-quarter update (Q1 FY 2025).

CBA share price dips but outperforms on results

The CBA share price looks to be holding up better than that of its major banking rivals after Australia's biggest bank achieved a 3.5% increase in operating income over the quarter.

Unaudited cash net profit of approximately $2.5 billion was flat year on year.

And CBA reported a 0.29% improvement in its Common Equity Tier 1 (CET1) ratio to 11.8% before the payment of $4.2 billion in 2H 2024 dividends.

"These results demonstrate ongoing focus on delivering for our customers and disciplined operational and strategic execution," CBA CEO Matt Comyn said.

Looking at what might impact the CBA share price ahead, Comyn sounded a note of caution around the pace of inflation reductions and ongoing global conflicts.

"Inflation is moderating, but at a slowing pace, and global geopolitical tensions are creating uncertainty," he said.

Despite noting the slow growth of the Aussie economy, Comyn added, "We remain optimistic on the overall outlook, and the Australian economy remains fundamentally sound."

More job cuts flagged

In other news that may impact the CBA share price over the months ahead, The Australian reports that CommBank is getting rid of 105 technology positions. This follows a reduction of 116 roles in September.

According to the Finance Sector Union (FSU), the impacted jobs are within CBA's Retail Technology, Business Banking Tech, Ops and Tech Corp Services and Chief Security Office segments.

FSU National Assistant Secretary Jason Hall was clearly displeased with the decision. He said:

The decision to sack 105 highly skilled workers from technology roles at CBA is a cruel blow to dedicated staff proud to work at a bank that continues to claim it is the most technologically advanced in Australia.

CommBank has yet to comment on the news. The Australian said it understands that impacted staff have been offered the opportunity for redeployment or upskilling.

With today's intraday loss factored in, the CBA share price remains up an impressive 46% over 12 months.

Should you invest $1,000 in Tinybeans Group Limited right now?

Before you buy Tinybeans Group Limited 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 Tinybeans Group Limited 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

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

More on Bank Shares

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

Why does Macquarie think the big 4 ASX bank shares are 'on borrowed time'?

With Australian interest rates likely to fall, the banks face compressed margins in the medium term.

Read more »

Bank building in a financial district.
Bank Shares

What happened with the big four ASX 200 bank stocks in April?

CBA led the charge among the ASX 200 bank stocks in April. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Bank Shares

Why did CBA shares jump over 10% in April?

It was a great month for owners of this banking giant's shares.

Read more »

Happy young woman saving money in a piggy bank.
Bank Shares

Which big 4 ASX bank share does Macquarie currently prefer?

Here’s why Macquarie likes this bank the most.

Read more »

Bank building with word Bank on it.
Bank Shares

ASX bank shares outperformed in April. Will this continue according to Macquarie?

What drove the strong performance by banks in April?

Read more »

a couple and their baby sit together at their computer carrying out digital transactions and smiling happily.
Bank Shares

3 things about BOQ stock every smart investor knows

This smaller bank has aspirations to become a larger competitor.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Bank Shares

CBA shares reach new all time high after 4% surge

CBA shares have done it again.

Read more »

Bank building in a financial district.
Bank Shares

Would I buy ANZ shares right now?

Would the bank be a good investment right now?

Read more »