Commonwealth Bank of Australia gains in line with broader sector; MS sees revenue growth

Global Brokerage

30/01/2025 01:57

** Shares of Commonwealth Bank of Australia  CBA.AX  rise
0.7% to A$160.19
    ** Stock's gains in line with a 0.6% jump in local
financials  .AXFJ 
    ** Analysts at Morgan Stanley expect 1H25 earnings for the
country's largest bank to continue to show revenue growth
    ** Brokerage sees lender's 1H25 margins to be above market
consensus, and also eyes an eight-basis-point margin rise,
compared with previous half-year period
    ** Underlying margin trends should be broadly stable vs
1Q25, with deposit impacts worth watching - MS
    ** Morgan Stanley thinks CBA should consider a further lift
in its payout ratio, forecasts 1H25 CET1 ratio of about 12.4%
    ** We expect management commentary to be balanced, with
references to ongoing competitive intensity and an uncertain
macro environment - Brokerage
    ** CBA stock has gained 4.5%, YTD

    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))