Is ASX Blue Chip CBA Still Worth Buying?

Commonwealth Bank of Australia is one of Australia's largest banks, providing retail and commercial banking services mainly in Australia and in New Zealand through its subsidiary, ASB. The bank operates through four key divisions which are Retail Banking Services, Business Banking, Institutional Banking and Markets, and ASB New Zealand.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank of Australia (ASX: CBA), on 18 June 2026, issued JPY 25.6 billion of subordinated fixed reset notes due 18 June 2036 under its US$70 billion Euro Medium Term Note Programme.

On 13 May 2026, CBA highlighted that the company maintained a strong balance sheet, supported by strong capital, liquidity, deposit funding, and provisioning despite of ongoing economic and geopolitical uncertainty.

The bank also stated that its capital and liquidity ratios were above regulatory minimums, with deposits accounting for 79% of total funding and $32 billion of long term wholesale funding already raised for FY26. It also increased its collective provisions to strengthen its position against heightened macroeconomic uncertainty.

As at 31 March 2026, CBA maintained a strong capital position, reporting Basel III CET1, Tier 1 and Total Capital ratios of 11.6%, 13.1%, and 20.0%, respectively. The CET1 ratio improved by 7 bps during the quarter, which was driven by earnings generation, this was partially offset by risk-weighted assets of Commonwealth Bank of Australia regulatory adjustments and the impact of the 2026 interim dividend of CBA. Total risk weighted assets increased by 2.4% quarter on quarter to $517.5 billion, primarily driven by higher IRRBB RWA and Credit risk RWA, partly offset by a decline in traded market risk RWAs.

Operating expenses, excluding restructuring and notable items increased 1%, mainly due to higher spending on cloud computing, software licensing, and investments in AI capabilities. These increases were partly offset by two fewer operating days in the quarter, the weaker New Zealand dollar, timing benefits, and ongoing productivity initiatives. CBA's strong financial performance and capital generation enabled it to pay $3.9 billion in dividends during the quarter, benefiting over 800,000 direct shareholders and more than 14 million Australians through superannuation funds. The bank's underlying net interest margin was broadly stable, excluding non-recurring tailwinds.

Outlook:

CBA believes the Australian economy will remain stable despite ongoing global uncertainty. However, higher interest rates, rising prices, and supply chain issues may reduce consumer spending and slow business activity. The bank plans to continue adjusting its risk and funding strategy as needed while focusing on its long-term growth plans.

(Source: Company Announcements)