How the CBA share price rocketed 17% in February

CBA shares stormed higher in February, even with the big four bank stock trading ex-dividend.

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The Commonwealth Bank of Australia (ASX: CBA) share price was on fire in February.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed out January trading for $149.36. When the closing bell sounded on 27 February, shares were swapping hands for $174.62 apiece.

That saw shares in Australia's biggest bank up a whopping 16.9% over the month just past, smashing the 3.7% gains posted by the ASX 200 over this same period.

But investors who owned the stock throughout the month will have raked in even bigger gains than the CBA share price boost suggests.

That's because CBA traded ex-dividend on 18 February.

When the bank reported its half year results on 11 February, management declared a fully franked interim dividend of $2.35 a share. Although that passive income won't be paid out until 30 March, it will go to investors who held the stock at market close on 17 February.

So, if we add that $2.35 back into the $174.62 closing price at the end of the month, then the accumulated value of CBA shares in February was up 18.5%.

Here's what's been stoking investor interest.

A man in a suit smiles at the yellow piggy bank he holds in his hand.

Image source: Getty Images

CBA share price catching tailwinds

Last month started auspiciously for the CBA share price following the 3 February interest rate increase by the Reserve Bank of Australia, with another hike possibly looming in 2026.

That's important because higher benchmark interest rates could help Australia's biggest bank increase its net interest margin (NIM) and boost profitability.

Not that profitability is a big issue for CommBank.

As mentioned up top, CBA reported its half year results (H1 FY 2026) on 11 February.

And the big four bank's cash net profit after tax (NPAT) came in at an eyewatering $5.45 billion, up 6% on H1 FY 2025. CommBank's half year NIM of 2.04% was steady on an underlying basis.

Commenting on the results that saw the CBA share price close up 6.8% on the day, CEO Matt Comyn said:

Our balance sheet settings remain resilient with strong levels of capital, deposit funding and provisioning given the economic backdrop and geopolitical issues. Our financial position enables us to support lending growth, continue investing to accelerate our technology modernisation agenda and enhance our GenAI capability…

Top dogs on the ASX 200

With the strong CBA share price gains, February also saw the Aussie bank retake the title of biggest stock on the ASX from BHP Group Ltd (ASX: BHP) on 12 February.

CBA had only lost that crown to BHP two weeks earlier, after CommBank had commanded the top ASX stock crown from some 18 months.

But with the BHP share price also racing higher over the month just past, CBA handed the title back to BHP on 27 February.

The battle continues.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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