CBA's 1H Results Slightly Disappoints UBS -- Market Talk

Dow Jones2023-02-15

1812 ET - CBA's 1H FY 2023 results issued this morning looks slightly disappointing to UBS analyst John Storey. In a note he says that this is his initial take, even as the headline numbers are largely in line with sell side Visible Alpha consensus. CBA, he notes, specifically addressed concerns around the impending fixed rate cliff in its result announcement, as well as deposit rates, and cyber security risks. UBS says that the credit impairment expense of A$500 million was in line with UBS estimates (A$532 million) but greater than consensus expectations of around A$485 million. The investment bank remains neutral on the stock, with a A$105/share target price. CBA was down 0.1% to A$109.25/share. (alice.uribe@wsj.com)

(END) Dow Jones Newswires

February 14, 2023 18:12 ET (23:12 GMT)

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Comments

  • chang168
    2023-02-15
    chang168
    up3
  • Karen333
    2023-02-15
    Karen333
    Key concern is the state of the economy and the impact on revenues in the coming year. Overly optimistic to expect a soft landing in Australia when such a large portion of loans are exiting the fixed rate honeymoon period. This will have a huge impact on the economy. Offsetting this will be the reopoening of borders and influx of students/tourists, but this will have minimal impact on CBA's income.
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