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Commonwealth Bank of Australia (ASX:CBAPF.PFD) ROE % : 12.71% (As of Jun. 2024)


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What is Commonwealth Bank of Australia ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Commonwealth Bank of Australia's annualized net income for the quarter that ended in Jun. 2024 was A$9,270.00 Mil. Commonwealth Bank of Australia's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was A$72,961.00 Mil. Therefore, Commonwealth Bank of Australia's annualized ROE % for the quarter that ended in Jun. 2024 was 12.71%.

The historical rank and industry rank for Commonwealth Bank of Australia's ROE % or its related term are showing as below:

ASX:CBAPF.PFD' s ROE % Range Over the Past 10 Years
Min: 12.51   Med: 13.98   Max: 17.88
Current: 12.95

During the past 13 years, Commonwealth Bank of Australia's highest ROE % was 17.88%. The lowest was 12.51%. And the median was 13.98%.

ASX:CBAPF.PFD's ROE % is ranked better than
70.55% of 1535 companies
in the Banks industry
Industry Median: 9.39 vs ASX:CBAPF.PFD: 12.95

Commonwealth Bank of Australia ROE % Historical Data

The historical data trend for Commonwealth Bank of Australia's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Commonwealth Bank of Australia ROE % Chart

Commonwealth Bank of Australia Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.56 13.52 14.11 13.84 12.98

Commonwealth Bank of Australia Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.29 14.23 13.72 13.18 12.71

Competitive Comparison of Commonwealth Bank of Australia's ROE %

For the Banks - Diversified subindustry, Commonwealth Bank of Australia's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Commonwealth Bank of Australia's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Commonwealth Bank of Australia's ROE % distribution charts can be found below:

* The bar in red indicates where Commonwealth Bank of Australia's ROE % falls into.



Commonwealth Bank of Australia ROE % Calculation

Commonwealth Bank of Australia's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=9394/( (71628+73088)/ 2 )
=9394/72358
=12.98 %

Commonwealth Bank of Australia's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=9270/( (72834+73088)/ 2 )
=9270/72961
=12.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Commonwealth Bank of Australia  (ASX:CBAPF.PFD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=9270/72961
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(9270 / 27184)*(27184 / 1265022.5)*(1265022.5 / 72961)
=Net Margin %*Asset Turnover*Equity Multiplier
=34.1 %*0.0215*17.3383
=ROA %*Equity Multiplier
=0.73 %*17.3383
=12.71 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=9270/72961
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (9270 / 13434) * (13434 / 27184) * (27184 / 1265022.5) * (1265022.5 / 72961)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.69 * 49.42 % * 0.0215 * 17.3383
=12.71 %

Note: The net income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Commonwealth Bank of Australia ROE % Related Terms

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Commonwealth Bank of Australia Business Description

Address
11 Harbour Street, Commonwealth Bank Place South, Level 1, Sydney, NSW, AUS, 2000
Commonwealth Bank is Australia's largest bank with operations spanning Australia, New Zealand, and Asia. Its core business is the provision of retail, business, and institutional banking services. The bank has emphasized its focus on banking in recent years with a numbers of asset divestments in wealth management and insurance.

Commonwealth Bank of Australia Headlines

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