Australia’s biggest bank’s share price finished at $73.60, the highest it has been in almost six months.
Commissioner Hayne seemed to be fairly pleased with the CBA response, saying “I was persuaded that Mr Comyn, CEO of CBA, is well aware of the size and nature of the tasks that lie ahead of CBA.”
However, CBA isn’t totally out of the woods. In its ASX release CBA referred to the Royal Commission report where it said “a number of matters regarding the Group’s conduct including in relation to superannuation warrant further investigation by relevant regulators and we will cooperate fully with these investigations.”
CBA has already taken action to improve its culture and governance, including the divestment of its global asset management business to Mitsubishi UFJ Trust and Banking Corporation for $4.13 billion.
Although it seems ASIC thinks CBA should have done a bit more by now when it came to the enforceable undertaking with CBA Financial Planning (CFP), where the regulator has temporarily banned CFP from charging ongoing fees until it fixes some of the issues identified by Ernst & Young and ASIC.
Is the CBA share price a buy?
After the end of trading today, CBA has a trailing grossed-up dividend yield of 8.4% and is valued at a bit over 13x FY19’s estimated earnings.
CBA does not strike me as a value pick after today’s rise, particularly with the threat of the removal of franking credit refunds still looming. CBA could be a decent pick for income, assuming the housing market doesn’t keep tanking for the rest of the year, but total returns could be disappointing for the next couple of years at least.
But for now I’d rather buy shares with more stable and growth-orientated futures such as these quality ASX income shares.
With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.
Hint: These are 3 shares you’ve probably never come across before.
They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”
We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."
Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!
The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.