By now, most ASX 200 investors would be aware that we're having a fairly horrid end to the trading week so far this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has tanked by a nasty 1.52%, falling to a three-month low.
Not a great way to start the weekend! But let's talk about Commonwealth Bank of Australia (ASX: CBA) shares.
When the ASX 200 plunges by this kind of magnitude, it's a fairly safe bet that the ASX 200 bank shares aren't having a great time. And lo and behold, that's what's playing out today.
Right now, Westpac Banking Corp (ASX: WBC) shares are down by 0.9% at $20.96. National Australia Bank Ltd (ASX: NAB) has lost 0.73% to $25.77, while ANZ Group Holdings Ltd (ASX: ANZ) has slipped by 0.64%.
But the CBA share price is decisively leading the charge lower, currently sporting a hefty loss of 1.25%, down to $98.18 a share.
That's obviously a fall that exceeds the losses of its other ASX 200 banking stablemates quite substantially.
So why are investors singling out CBA shares for this specific harsh punishment today?
Well, it's hard to know for sure. But the bank did make an announcement today that could be contributing to investors' pessimism right now.
This morning, CBA put out a media release that confirmed the bank would not be shutting any more of its regional or rural branches until at least 2026. That's a three-year extension on what the bank had previously committed.
Here's some of what CBA retail banking services group executive, Angus Sullivan, told customers:
We recognise the way people are banking is changing, with more customers adopting the benefits offered by digital and phone-based services. Through this time of change we want to support customers in regional areas who prefer banking in branch and so we will maintain our existing face-to-face services in these communities.
Today's announcement ensures CBA continues to offer the largest branch network in Australia, providing customers across the country with a wide range of flexible banking options and locations.
We look forward to working closely with regional communities over the next three years to refine how we better support and familiarise them with all the CBA banking services available.
So why might this not be popular with ASX investors?
Why are CBA shares the biggest ASX 200 bank loser today?
Well, regional and rural bank branches might be appreciated by the customers they serve. But they are expensive to keep open, considering staffing costs, rent expenses and the like. For this reason, many shareholders would probably prefer that CBA closes down as many as possible, especially the ones that don't deliver a compelling cost-benefit analysis.
Most ASX banks have been reducing their branch numbers over the past decade for this very reason, helped by the shift to digital and phone banking.
But CBA has clearly decided that it is in its customers' best interests to make this commitment today. But this could also be the reason why investors are voicing their displeasure through the CBA share price. Only time will tell if this is the right move for Commonwealth Bank, its shareholders and its customers.
