Sydney, Feb 18, 2026, 17:02 AEDT — The session is done.
- Commonwealth Bank of Australia slipped 0.65% to end at A$176.88.
- Shares traded ex-dividend, with the interim payout set at A$2.35 a share.
- Peers in the bank earnings space drew most of the attention, though NAB managed to hit a record high.
Commonwealth Bank of Australia (CBA.AX) ended Wednesday down 0.65% at A$176.88, with the ex-dividend date prompting the usual round of selling. (Investing.com)
So, why now? Australia’s banks have been carrying the bulk of the market’s gains lately, and CBA’s dividend—big enough to nudge the index and shake up portfolio allocations—lands right in the thick of it. Traders kept an eye glued to their screens, scanning late earnings-season clues for sector loan growth and margins.
Wednesday saw CBA shares go ex-dividend, which means anyone buying after that date misses out on the fully franked A$2.35 interim dividend, per the bank’s own dividend page. Those on the books by Feb. 19 get paid, with funds set to hit accounts on March 30. (CommBank)
After kicking off February on a strong note, the stock has since retreated. CBA delivered record first-half cash earnings and flagged gains across mortgages, business lending, and deposits. “The main highlight from this result from CBA has been the growth in the business bank and operational excellence across mortgages in a higher competition environment,” said Michael Haynes, investment analyst at Atlas Funds Management. (Reuters)
CEO Matt Comyn described the economy as “robust” during a call with investors, but cautioned that as long as inflation sticks around, interest rates aren’t likely to come down. (Reuters)
Net interest margin, a metric that frequently weighs on bank shares, is in focus again with CBA’s latest results. The margin slipped by 4 basis points to 2.04% for the half, Reuters reports, with competition for customers picking up. (Reuters)
National Australia Bank (NAB.AX) rocketed to an all-time high Wednesday, as first-quarter cash earnings rose 16%. Citi described the result as a “very strong headline beat” but flagged the CET1 ratio as the “clear negative.” (Reuters)
Debate over CBA’s valuation isn’t letting up. The stock has held onto that premium for years, still ranking as one of the priciest major banks by typical benchmarks. Now, Reuters notes, shares have dropped roughly 17% since hitting a record high last June, prompting some investors to pull their funds. (Reuters)
But there’s a catch for bullish investors. Fierce home loan competition continues to squeeze margins, making earnings upgrades harder to justify. Should interest rates hold at current levels or rise further, borrowers may start to feel the pinch, and bad-debt charges could edge up—though they’re still coming off a low base.
Traders are watching post-record date dividend flows from Thursday, gauging if the banks can maintain momentum as earnings season wraps. The Reserve Bank of Australia’s policy call set for March 16–17 could steer rate expectations. (rba.gov.au)
