CommBank’s tanking share price shows we should move beyond ASX 200 ETFs – David Tuckwell
With CommBank (ASX: CBA) down 10% the past week, it’s worth taking a fresh look at buying the banks – and by extension, buying ASX 200 ETFs.
This week’s drop stems from results showing CBA’s costs growing faster than its revenue, undermining profit growth. That makes its valuation – the third-highest for a major bank globally – difficult to justify.
Its lending and deposits are growing, yes, but only in line with industry averages. And according to the RBA, net interest margins and returns on equity are declining for the big banks across the board.
Were these challenges unique to CBA, or the banks, they may be waved away. But in many ways, the banks’ challenges are a…
