SYDNEY, July 18, 2026, 09:08 AEST — Trading on the ASX cash market is currently shut.
- CBA rose 1.73% over the week, finishing at A$171.78 on Friday.
- The company’s price-to-earnings ratio of 27.80 is 48% higher than the average of leading bank peers.
- CBA reported a 0.3% increase in its June spending index, though households with mortgages trailed the broader trend.
Commonwealth Bank of Australia ASX:CBA extended its advantage against top-bank competitors last week. Shares climbed 1.73% from July 10, even after a 0.78% decline on Friday.
The S&P/ASX 200 declined by 0.50% on Friday. CBA’s weekly gains outperformed the benchmark index.
The split sets a higher bar for earnings. CBA’s internal spending data indicated a slowdown in household demand in June.
CBA trades at 27.80 times earnings, standing 48% higher than the average of its peers. Its stated dividend yield trails by 1.48 percentage points.
The review includes National Australia Bank Ltd ASX:NAB, ANZ Group Holdings Ltd ASX:ANZ, and Westpac Banking Corp ASX:WBC, each underperforming CBA in the previous week.
| Bank | Friday close (A$) | Week change | P/E | Dividend yield |
|---|---|---|---|---|
| Commonwealth Bank | 171.78 | up 1.73% | 27.80x | 2.88% |
| National Australia Bank | 39.85 | added 0.61% | 19.88x | 4.27% |
| ANZ Group | 36.06 | rose 0.03% | 18.33x | 4.60% |
| Westpac | 36.56 | gained 0.05% | 18.02x | 4.21% |
| Three-bank average | — | advanced 0.23% | 18.74x | 4.36% |
Weekly changes are based on July 10 and July 17 closing prices. Valuation data are derived from up-to-date Google Finance information.
Friday-to-Friday performance data highlights the divide. CBA outperformed the average of the three banks by 1.50 percentage points.
The CBA Household Spending Insights index edged up just 0.3% in June, while retail spending growth eased to 0.2%, down from 0.6% recorded in May.
Recreation expanded by 0.2%, easing from 2.3%. Hospitality rose 0.1%, compared with 0.9% in the previous month.
Belinda Allen, head of Australian economics at CBA, said the moderation was anticipated. It was “broadly in line with our expectation” for weaker spending this year. CommBank
The divide by age was more pronounced. Year-on-year spending among over-65s rose 10.1%, compared to a 4.2% increase for 25- to 34-year-olds.
Spending increased by 4.5% among the 35-to-44 and 45-to-54 age categories, CBA reported, noting these age groups showed greater sensitivity to rising rates.
The Reserve Bank has held the cash rate at 4.35%. While increased rates can boost returns on assets, they also put pressure on borrowers.
CBA’s valuation is underpinned by operations. Home lending rose 3.7% in the first half, business lending increased 6%, and household deposits climbed 7.5%.
All metrics exceeded their respective benchmarks. CBA maintained a 25.4% share of the Australian home loan market.
However, net interest margin slipped by four basis points to 2.04%. Operating expenses increased 5% to A$6.72 billion.
No CBA result is due next week. Australia’s June labour data will be released on Thursday at 11:30 a.m. AEST.
The Reserve Bank of Australia will deliver its next policy decision on August 11. Commonwealth Bank of Australia is set to announce full-year results the following morning.
Risks: A disappointing jobs report, reduced credit growth, or an increase in arrears may reveal the premium. Ongoing inflation could maintain higher levels of borrower stress and funding pressure.
Investors are supporting a single thesis until August: CBA needs to outpace household weakness by growing its market share quickly enough to shield its loan portfolio.
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