ASX 200 down as Commonwealth Bank of Australia dives, despite posting four per cent profit jump in the past financial year
The index fell 0.3 per cent in the first 50 minutes of trading.
Its dropped as Commonwealth Bank of Australia fell 3.9 per cent, despite the banking giant revealing a four per cent profit jump to $10.25 billion for the 2025 financial year.
The bank, which makes up 12 per cent of the ASX 200's value, also revealed a $2.60 per share dividend for the second half of the year, bringing its total FY25 dividend to $4.85 and paying $8 billion to shareholders.
Sky News Business Reporter Ed Boyd said the bank's share price dip came amid concerns the major bank is overvalued.
CBA's share price is down despite posting a solid profit jump. Picture:'It's because CBA is the most expensive bank in the world,' Boyd said on AM Agenda.
'It has a 30-times earnings valuation and clearly some investors think its profit wasn't as good as what they were expecting to justify a share price of almost $175.'
While CBA took a hit on Wednesday, its competitors fared much better with ANZ rising 1.1 per cent and Westpac and NAB sinking 0.5 and 0.7 per cent respectively.
AGL Energy is down 12.6 per cent after it revealed a 21.2 per cent profit drop amid lower wholesale power prices and strong competition.
Penfolds-owner Treasury Wine Estates lifted about two per cent after reporting a 342 per cent profit lift thanks to booming sales in China.
Meanwhile, Pilbara Minerals lost 4.6 per cent and Liontown Resources fell 3.9 per cent.
On Wall Street, the Nasdaq lifted 1.4 per cent on Tuesday while the S&P 500 and the Dow Jones both climbed 1.1 per cent.
London's FTSE 250 and Germany's DAX both fell 0.2 per cent as the STOXX Europe 600 rose 0.2 per cent.
New Zealand's NZX 50 Index is up 0.7 per cent since trading began on Wednesday while Japan's Nikkei 225 added 0.9 per cent.
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Sydney Morning Herald
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