The Commonwealth Bank of Australia (ASX: CBA) share price edged 0.3% higher on Friday to close at a new 52-week high. Shares in Australia's largest bank finished the day at $89.39 per share with a $158.6 billion market capitalisation.
This caps off another strong month of trade for the ASX bank share. The CBA share price has climbed 3.8% higher in April as we approach the end of the month. So, what's pushing the Aussie bank's valuation higher in 2021?
Why the CBA share price is hitting new heights
2020 was a remarkable period for ASX bank shares and CBA was no exception. Shares in the Aussie bank were smashed in the March bear market as the coronavirus pandemic took hold.
However, we've seen a consistent recovery in bank valuations since late last year. The CBA share price is now up 29.5% since the start of November while the S&P/ASX 200 Index (ASX: XJO) has climbed 19.1%.
Favourable conditions including a strong housing market have helped maintain consistent borrowing demand. The banks have been able to write significant business in recent months as the Aussie housing market has heated up, particularly in major cities.
Government stimulus measures and central bank interventions to drive down lending rates have also been good for the banks. That has allowed them to access cheaper funding and maintain liquidity in Aussie credit.
Another factor has been the continual economic recovery since mid-last year. Stronger jobs and retail numbers have helped increase confidence in an economic bounce back from COVID-19.
As a result, earnings have been strong and the CBA share price has climbed to a new 52-week high. That's despite a couple of recent hiccups including a deceptive conduct fine and a big four bank class action.
Foolish takeaway
The big four bank shares have been strong performers to start the year. The CBA share price has jumped to a new 52-week high as at Friday's close and it will be interesting to see how it performs in May.
