Commonwealth Bank of Australia (ASX: CBA) shares are, once again, racing ahead of the benchmark today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are up 0.4% in early afternoon trade on Wednesday, trading for $139.85 apiece.
The ASX 200 is going the other way, down 0.2%.
CommBank stock has defied a host of bearish analyst forecasts and is now up 39% since this time last year. And that doesn't include the $4.65 a share in full franked dividends CBA has paid over this time.
So, after a big year, here's why today is an important day for CBA shares.
CBA shares in focus amid AGM
Australia's biggest bank hosted its annual general meeting (AGM) today in Adelaide.
Addressing shareholders, CBA chairman Paul O'Malley said:
Our focus continues to be on our operational integrity, risk management, and ensuring the bank's strategic goals are suitable for the next five to ten years.
More than one in three Australians and more than one in four businesses now consider CBA as their main financial institution.
Potentially giving CBA shares a boost, O'Malley noted that, "Balance sheet strength is critical."
He added:
Our capital, liquidity, funding, and provisions metrics position the bank well to continue supporting customers and the broader economy while delivering sustainable returns to our shareholders.
And on the technology front, O'Malley gave a nod to the rapidly evolving role of artificial intelligence.
"We see AI as a valuable tool that empowers us to deliver exceptional service through the improved accuracy and efficiency in our customer responses," he said. "It will also help us combat financial crime and to review suspicious transactions. We'll deploy and govern the use of these capabilities carefully."
And CBA shareholders were not forgotten.
In FY 2024, O'Malley said, "We returned $8 billion to shareholders in dividends and share buybacks."
Over to the CEO
The chairman then turned the podium over to CBA CEO Matt Comyn.
"Our results for the 2024 financial year reflect the strength of our business and the disciplined execution of our strategy," Comyn noted.
As for the profit dip in FY 2024, which failed to derail the big gains in CBA shares, Comyn said, "For the full year, our cash net profit after tax was down 2%, driven by the impact of inflation on our operating expenses, partly offset by a lower loan impairment expense."
Pointing to the bank's liquidity, funding and capital positions, he said, "This year, we were rated by Moody's as one of only five banks globally with the highest financial strength."
Looking at what's ahead for CBA shares, Comyn said, "The economy is still absorbing the shocks of the past few years."
He added:
While inflation is falling, it has proven persistent, and households are continuing to find it very challenging. However, the domestic economy remains fundamentally sound with several structural advantages that provide optimism for the future.
We have the strength and stability to support customers when needed and play our part in stimulating economic growth by lending to productive parts of the economy.
