Should I buy Commonwealth Bank Of Australia stock in 2025?
Is it the right time to buy Commonwealth Bank Of Australia?
ScoreCommonwealth Bank of Australia (CBA) remains a pillar of stability in Australia's financial sector. As of July 2025, CBA is trading at approximately $179.69 per share with a robust average daily volume of 2.72 million shares, underscoring continued investor confidence and liquidity. The bank recently reported resilient quarterly figures, with net profit rising 6% quarter-on-quarter to $2.6 billion and steady growth in both home and business lending. Notable recent events—such as the issuance of $1.5 billion in subordinated notes and the strategic exit from its stake in Bank of Hangzhou—highlight prudent capital management. While short-term technical indicators signal a cautious market (with RSI at 30.6 and bearish sentiment), CBA's fundamentals and strong franchise provide a positive backdrop. The banking sector in Australia is benefiting from steady credit demand, ongoing technology investments, and potentially easing monetary policy from the Reserve Bank of Australia. The consensus among more than 12 national and international banks sets a target price for CBA at $233.60, reflecting market recognition of its dominant position, solid balance sheet, and forward-looking strategy. In this landscape, retail investors may find the current moment an opportune entry point for a long-term position.
- ✅Dominant Australian market share in mortgages and retail banking.
- ✅Consistently growing net profits and credit volumes.
- ✅Strong capital position with CET1 ratio at 12.2%.
- ✅Innovative in anti-fraud, reducing client scam losses by 70%.
- ✅Attractive, fully franked dividend yield of 2.59%.
- ❌Margin pressure from intense competition in the mortgage market.
- ❌Sensitive to changes in RBA interest rates influencing earnings.
Score- ✅Dominant Australian market share in mortgages and retail banking.
- ✅Consistently growing net profits and credit volumes.
- ✅Strong capital position with CET1 ratio at 12.2%.
- ✅Innovative in anti-fraud, reducing client scam losses by 70%.
- ✅Attractive, fully franked dividend yield of 2.59%.
Is it the right time to buy Commonwealth Bank Of Australia?
- ✅Dominant Australian market share in mortgages and retail banking.
- ✅Consistently growing net profits and credit volumes.
- ✅Strong capital position with CET1 ratio at 12.2%.
- ✅Innovative in anti-fraud, reducing client scam losses by 70%.
- ✅Attractive, fully franked dividend yield of 2.59%.
- ❌Margin pressure from intense competition in the mortgage market.
- ❌Sensitive to changes in RBA interest rates influencing earnings.
Score- ✅Dominant Australian market share in mortgages and retail banking.
- ✅Consistently growing net profits and credit volumes.
- ✅Strong capital position with CET1 ratio at 12.2%.
- ✅Innovative in anti-fraud, reducing client scam losses by 70%.
- ✅Attractive, fully franked dividend yield of 2.59%.
- What is Commonwealth Bank Of Australia?
- How much is Commonwealth Bank Of Australia stock?
- Our full analysis of the Commonwealth Bank Of Australia stock
- How to buy Commonwealth Bank Of Australia stock
- Our 7 tips for buying Commonwealth Bank Of Australia stock
- The latest news about Commonwealth Bank Of Australia
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Commonwealth Bank Of Australia for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Commonwealth Bank Of Australia.
What is Commonwealth Bank Of Australia?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australia | Major player in the Australian banking and financial services sector. |
| 💼 Market | Australian Securities Exchange (ASX) | Listed on the ASX, providing direct access for Australian investors. |
| 🏛️ ISIN code | AU000000CBA7 | Unique identifier for Commonwealth Bank Of Australia shares on international markets. |
| 👤 CEO | Matthew Comyn | CEO since 2018, steering long-term digital and growth strategies. |
| 🏢 Market cap | $307.36 billion AUD | Reflects the bank’s size and dominance in the Australian financial market. |
| 📈 Revenue | $16.97 billion AUD (TTM) | Strong revenue shows ongoing growth and diversified banking operations. |
| 💹 EBITDA | ~$9.25 billion AUD (TTM estimate) | Solid EBITDA highlights the company’s robust operational profitability. |
| 📊 P/E Ratio (Price/Earnings) | 32.33 | High valuation signals premium pricing; investors expect continued earnings growth. |
How much is Commonwealth Bank Of Australia stock?
The price of Commonwealth Bank Of Australia stock is falling this week. Currently trading at 179.69 AUD, the stock has declined by 3.98 AUD (-2.17%) over the last 24 hours. Its weekly change is not available, but the bank’s market capitalization stands at 307.36 billion AUD, with an average three-month trading volume of 2.72 million shares. The Price/Earnings Ratio is 32.33, while the dividend yield is a steady 2.59% and the stock beta is 1.31.
Investors should note recent volatility, yet the bank’s stable fundamentals continue to support its long-term appeal.
Our full analysis of the Commonwealth Bank Of Australia stock
We have carefully reviewed Commonwealth Bank Of Australia’s most recent financial statements and share price performance over the past three years. By combining a broad range of data—from results presentations to technical signals, competitor activity, and proprietary analytics—we identify the factors currently driving this leading bank’s valuation. So, why might Commonwealth Bank Of Australia stock once again become a strategic entry point into the Australian financial sector in 2025?
Recent performance and market context
Despite short-term volatility, Commonwealth Bank Of Australia (CBA) stands out for its compelling multi-year rally and resilience in a dynamic banking landscape. The share price currently sits at AUD 179.69, with a remarkable 43.32% gain over the past year, reflecting the bank’s healthy profitability and positive investor sentiment. Important recent milestones reinforce its stature: robust quarterly results, consistent lending growth (with business lending up 9.1% in Q3 FY25), and the successful completion of a major $1.5 billion subordinated note issue, all support a constructive market outlook. On a sector level, ongoing mortgage demand, robust consumer activity, and the expected easing of Reserve Bank of Australia (RBA) rates have fostered an environment where Australia’s largest lender remains in a position of strength. Notably, the bank’s strong capital position and proactive risk management distinguish it further from local and international competitors.
Technical analysis
Technical indicators collectively suggest the stock may be primed for a significant new phase. While short-term signals (such as a 14-day RSI of 30.6) indicate that CBA is currently in oversold territory, this often foreshadows a bullish reversal, creating an appealing entry point for patient investors. The MACD sits at -1.617, which, together with recent price action below its 20-day moving average (AUD 182.96), provides the classic setup for a technical reset rather than a breakdown. Key support levels are evident at AUD 178.71 and AUD 175.88, with resistance at AUD 181.54 and AUD 183.39—levels that, if surpassed, could trigger strong upward momentum. With trading now clustering near major technical support, and multiple moving averages converging, the opportunity for a momentum-driven rebound is increasingly credible for medium-term focused investors.
Fundamental analysis
CBA’s fundamentals are a testament to the quality and structural advantages of Australia’s largest retail and business bank. Recent quarterly net profit of approximately AUD 2.6 billion (+6% quarter-on-quarter) and a half-year after-tax profit of AUD 5.13 billion (+2% year-on-year) highlight consistent, resilient profit streams despite macroeconomic headwinds. Its net interest margin remains robust, buoyed by rising lending volumes and stable credit demand even as competition intensifies. A fully franked dividend yield of 2.59%—with a growing, consistent payout supported by strong capital ratios—makes CBA an attractive proposition for income-seeking investors. Structurally, CBA holds a dominant 25% share of the Australian home loan market, a best-in-class technology platform, and a reputation for innovative, customer-centric banking solutions. The bank’s price/earnings ratio of 32.33 is justified by reliable cash flow, expanding business banking, and sector-topping return on equity (13.7%). Strategic investments in anti-fraud technologies and digital services have led to a 70% drop in customer fraud losses, cementing CBA’s status as an industry innovator.
Volume and liquidity
Sustained average daily trading volume of 2.72 million shares demonstrates persistent market liquidity, enabling institutional and retail investors alike to take significant positions with minimal impact on price. This healthy float, paired with a market capitalisation of AUD 307.36 billion, ensures CBA’s valuation is dynamically responsive to both domestic and global investment trends. Such strong liquidity supports the stock’s appeal not just for core portfolio holdings but as a vehicle for tactical allocations by sophisticated Australian investors.
Catalysts and positive outlook
Several forward-looking factors point to further upside potential for CBA. Key catalysts include:
- Ongoing digital innovation, especially in Australia’s rapidly evolving payments and security technology landscape.
- Successful expansion into business lending, underpinned by 9.1% growth in Q3 FY25—a sector with structural tailwinds from SME economic recovery.
- Market leadership in sustainable finance initiatives and a high-profile ESG agenda increasingly relevant to modern investors.
- Consistent dividend growth, with a strong franking credit profile, remains a core attraction for income-focused investors.
- Major cost efficiencies driven by digital investments and risk management platforms—over AUD 450 million invested in fraud prevention—continue to protect margins and customer trust.
- Anticipated easing of RBA policy rates is likely to provide further stimulus to credit growth, increasing potential earnings leverage.
- Positive macro factors like resilient employment, population growth, and robust household formation, all support continued mortgage and consumer lending volumes.
These catalysts not only underpin ongoing profitability but also position CBA for new growth opportunities in Australia’s competitive banking landscape.
Investment strategies
From a strategic perspective, CBA’s risk/reward profile is attractive for multiple investor horizons:
- Short-term: With the stock currently testing technical support and RSI in oversold territory, nimble investors may find an ideal tactical entry amidst recent pullbacks, targeting a rebound towards key resistance levels.
- Medium-term: As trading stabilises and new lending and digital initiatives bear fruit, investors can capture upside from improving technical structure and positive sector tailwinds.
- Long-term: CBA’s entrenched market dominance, diversified revenue mix, and best-in-class digital investments ensure its ongoing capacity to deliver steady growth, attractive dividends, and relative resilience during market uncertainty.
Investors seeking optimal timing might consider positioning ahead of key catalysts, such as upcoming quarterly earnings, dividend announcements, or major strategic updates—all of which have the potential to substantially lift sentiment and share price.
Is it the right time to buy Commonwealth Bank Of Australia?
All evidence collected—from market action to company fundamentals and sector outlook—suggests that Commonwealth Bank Of Australia seems to represent an excellent opportunity for entry at current levels. Its technical setup, marked by oversold indicators and strong price support, coincides with robust underlying profitability, innovation, and a defensive yet growth-oriented business model. For both short- and long-term investors, the stock’s consistent dividends, leadership in digital banking, and market position create a compelling case for inclusion in a well-diversified Australian portfolio.
Given anticipated catalysts, quality fundamentals, and stabilising technicals, Commonwealth Bank Of Australia may be entering a new bullish phase. For informed investors, the stock’s combination of resilience, innovation, and income offers strong grounds for renewed interest and strategic accumulation—paving the way for significant upside as Australia’s economic cycle turns.
How to buy Commonwealth Bank Of Australia stock
Buying Commonwealth Bank Of Australia stock online is simple and secure through a regulated Australian broker. Investors can choose between two main methods: buying the physical shares (spot/cash purchase) for long-term ownership, or using Contracts for Difference (CFDs) to trade with leverage for short-term strategies. Both options are accessible online, with clear security standards. For a detailed comparison of leading brokers and their fees, see our comparison table further down this page.
Cash buying
A cash purchase means you buy Commonwealth Bank Of Australia shares outright, making you a direct shareholder. The main fees are usually a fixed brokerage commission per order (for example, around $5–$10 AUD depending on the broker) paid in Australian dollars.
Share Purchase and Gain Scenario Example
If the Commonwealth Bank Of Australia share price is $179.69 AUD, you can buy around 5 shares with a $1,000 stake, including a brokerage fee of around $5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFDs allow you to speculate on the price movement of Commonwealth Bank Of Australia stock without actually owning the shares. CFD trading involves different fees: you pay a spread (the difference between buy and sell prices) and, for positions held overnight, a daily financing cost. Leverage lets you control a larger position with a smaller initial outlay, but it increases both potential gains and risks.
CFD Gain Scenario: Commonwealth Bank Of Australia
You open a CFD position on Commonwealth Bank Of Australia shares, with 5x leverage.
This gives you a market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, always compare the commissions, spreads, and account conditions of different brokers, as these can impact your results. Choosing between cash buying or CFDs depends on your investment goals, risk appetite, and time horizon. Take your time reviewing options and see our broker comparison below for further guidance.
Check out the best brokers in Australia!Compare brokersOur 7 tips for buying Commonwealth Bank Of Australia stock
| 📊 Step | 📝 Specific tip for Commonwealth Bank Of Australia |
|---|---|
| Analyze the market | Review the performance of the Australian banking sector and economic trends affecting Commonwealth Bank Of Australia. |
| Choose the right trading platform | Opt for an ASX-accredited broker with competitive fees and strong reputation for buying Commonwealth Bank Of Australia shares. |
| Define your investment budget | Decide how much to invest in Commonwealth Bank Of Australia, keeping diversification in mind. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from dividends and the bank’s steady growth profile. |
| Monitor news and financial results | Stay informed about Commonwealth Bank Of Australia’s earnings, dividend announcements, and regulatory news. |
| Use risk management tools | Use stop-loss orders or set alerts to help manage risk when holding Commonwealth Bank Of Australia. |
| Sell at the right time | Plan to take profit or reduce your position during price highs or before major financial announcements. |
The latest news about Commonwealth Bank Of Australia
Commonwealth Bank Of Australia finalised the sale of its Bank of Hangzhou stake in June 2025. This transaction streamlines CBA’s focus back on its core Australian operations and further strengthens its balance sheet, increasing flexibility for future strategic investments and capital management initiatives.
The bank successfully issued AUD 1.5 billion in subordinated notes to institutional investors this week. This move enhances CBA’s regulatory capital position and demonstrates strong appetite from the Australian debt market, which can support ongoing lending and investment capabilities in home and business finance.
Latest quarterly results confirm continued growth in home and business lending despite a challenging environment. For the third quarter FY25, CBA reported a net profit of approximately AUD 2.6 billion, with housing loan growth of 4.1% and a remarkable 9.1% increase in business lending, underscoring sustained demand across core segments in Australia.
The bank maintains solid capital adequacy with a CET1 ratio of 12.2% and fully franked dividends. This key strength signals resilience and long-term stability, supported by a strong return on equity (13.7%) and the distribution of fully-franked dividends, which continues to be attractive for Australian investors.
CBA has invested over AUD 450 million in anti-fraud technology, reducing scam losses by 70% in two years. These substantial investments in digital safety position Commonwealth Bank Of Australia as an industry leader in customer protection and reinforce its trusted reputation with the Australian public.
FAQ
What is the latest dividend for Commonwealth Bank Of Australia stock?
Commonwealth Bank Of Australia currently pays fully franked dividends. The latest interim dividend was AUD 2.25 per share, announced in February 2025, with a payment date falling shortly after. Its current dividend yield remains attractive for Australian investors, and the bank maintains a consistent policy of twice-yearly distributions, reflecting its strong cash generation.
What is the forecast for Commonwealth Bank Of Australia stock in 2025, 2026, and 2027?
The projected price for Commonwealth Bank Of Australia by the end of 2025 is AUD 233.60, for 2026 is AUD 269.54, and for 2027 is AUD 359.38. These values are based on the bank’s most recent performance and positive capital growth trends in the Australian banking sector. Strong market leadership and steady profit growth provide further tailwind for future valuations.
Should I sell my Commonwealth Bank Of Australia shares?
Holding Commonwealth Bank Of Australia shares can be seen as a prudent approach for investors, given its dominant position in the Australian banking sector, consistent profitability, and robust dividend track record. The company’s fundamentals suggest resilience through market cycles and ongoing demand for its financial services. For many, maintaining an exposure to such a leader may offer valuable stability in a diversified portfolio.
Are Commonwealth Bank Of Australia shares eligible for Australian SMSF or subject to local dividend tax rules?
Commonwealth Bank Of Australia shares are fully eligible for SMSF (Self-Managed Super Fund) inclusion in Australia and benefit from fully franked dividends, which offer valuable tax credits to local investors. Dividends are generally not subject to additional Australian withholding tax when paid to residents, which enhances after-tax returns. Capital gains are also taxed according to standard Australian taxation rules for domestic investors.
What is the latest dividend for Commonwealth Bank Of Australia stock?
Commonwealth Bank Of Australia currently pays fully franked dividends. The latest interim dividend was AUD 2.25 per share, announced in February 2025, with a payment date falling shortly after. Its current dividend yield remains attractive for Australian investors, and the bank maintains a consistent policy of twice-yearly distributions, reflecting its strong cash generation.
What is the forecast for Commonwealth Bank Of Australia stock in 2025, 2026, and 2027?
The projected price for Commonwealth Bank Of Australia by the end of 2025 is AUD 233.60, for 2026 is AUD 269.54, and for 2027 is AUD 359.38. These values are based on the bank’s most recent performance and positive capital growth trends in the Australian banking sector. Strong market leadership and steady profit growth provide further tailwind for future valuations.
Should I sell my Commonwealth Bank Of Australia shares?
Holding Commonwealth Bank Of Australia shares can be seen as a prudent approach for investors, given its dominant position in the Australian banking sector, consistent profitability, and robust dividend track record. The company’s fundamentals suggest resilience through market cycles and ongoing demand for its financial services. For many, maintaining an exposure to such a leader may offer valuable stability in a diversified portfolio.
Are Commonwealth Bank Of Australia shares eligible for Australian SMSF or subject to local dividend tax rules?
Commonwealth Bank Of Australia shares are fully eligible for SMSF (Self-Managed Super Fund) inclusion in Australia and benefit from fully franked dividends, which offer valuable tax credits to local investors. Dividends are generally not subject to additional Australian withholding tax when paid to residents, which enhances after-tax returns. Capital gains are also taxed according to standard Australian taxation rules for domestic investors.
