After a long run of strong outperformance, Commonwealth Bank of Australia (ASX: CBA) shares materially underperformed the benchmark index for the second consecutive month in August.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed out July trading for $177.91. On 29 August, shares ended the day changing hands for $170.30 apiece.
This put CBA shares down 4.3% over the month just past, well behind the 2.6% gains posted by the ASX 200 during this same time.
With most analysts continuing to label CommBank stock as overvalued, citing its elevated price-to-earnings (P/E) ratio relative to the other big four ASX 200 bank stocks, retail and institutional investors alike look to have been reducing their exposure to Australia's biggest bank, which also happens to still be the largest stock trading on the ASX.
Investors are also likely eyeing the potential for further interest rate cuts from the Reserve Bank of Australia (RBA). While that will help support household spending and business investment, it will also pressure the bank's net interest margin (NIM) and could impact its profitability.
But the biggest news for CBA over the month was the release of the bank's full-year financial results (FY 2025)
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CBA shares pressured on FY 2025 results
CBA shares were in sharp focus on 13 August as the market analysts pored over the bank's earnings results.
Highlights included an FY 2025 statutory net profit after tax (NPAT) of $10.13 billion, up 7% from FY 2024. Cash net profit after tax of $10.25 billion was up 4%.
And underlying NIM held up well, increasing by 0.02% over the 12 months to 2.08%.
In line with the rising profits, the board declared a final fully franked dividend of $2.60 a CBA share, up 4% from last year's final CBA dividend. Eligible investors can expect to receive that passive income payout on 29 September.
That brought the full year CBA dividend payout to $4.85 a share. At Friday's closing price, this saw the ASX 200 bank stock trading on a fully franked dividend yield of 2.9%.
Commenting on the results and outlook on the day, CommBank CEO Matt Comyn said:
Despite global uncertainty, the Australian economy has remained resilient, with strong fundamentals including a healthy labour market, steady immigration and ongoing public sector investment. Even though sentiment remains subdued, we expect economic growth to improve modestly as the year progresses.
CBA shares closed down 5.4% on the day the bank reported its results.
