Commonwealth Bank Hits Record Highs, Driving Momentum in ASX300

May 16, 2025 12:02 PM AEST | By Team Kalkine Media

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Commonwealth Bank Hits Record Highs, Driving Momentum in ASX300 — Image source: shutterstock

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Highlights

Commonwealth Bank (CBA) shares reach all-time highs above $172

Optimism around RBA interest rate policy fuels bank sector rally

CBA's strong business loan growth and earnings exceed expectations

Australian banking giant Commonwealth Bank (ASX:CBA) made headlines this week as its share price surged past the AU$170 mark, reaching a new record high of AU$172.59 on Friday morning. The sharp move follows growing investor confidence around the Reserve Bank of Australia's (RBA) monetary policy direction, with market participants increasingly optimistic that rate cuts could be on the horizon after the central bank's recent meeting.

Since the beginning of the year, shares of CBA have climbed over 10%, significantly outperforming many peers and reinforcing its position as a leader among Australia's big four banks. The bank’s performance also helped bolster broader financial sentiment within the Australian Securities Exchange, particularly in the context of the benchmark ASX300 index, which includes some of the nation's top-performing listed companies.

Fueling CBA's latest rally was its strong quarterly trading update. The bank reported $2.6 billion in cash earnings, topping market forecasts. A standout figure in the report was the 9.1% increase in business lending, reaching $3.7 billion—an amount that is 1.3 times higher than the average of its major bank counterparts. This result underscores a solid demand for credit across the business sector, even amid a backdrop of macroeconomic uncertainty.

Investors tracking income-focused opportunities have also shown renewed interest in financial stocks, especially those offering reliable dividends. As one of Australia's most prominent dividend payers, CBA remains a core part of the conversation around ASX dividend stocks, particularly for those seeking consistent income streams from established blue-chip names.

The upward momentum in CBA's share price reflects a broader confidence in the strength of Australia's banking sector, especially as inflation pressures begin to ease and expectations build for a more accommodative monetary environment. With ongoing demand for credit and resilient earnings, the financial sector—anchored by companies like Commonwealth Bank—continues to be closely watched within the ASX300 landscape.

As macroeconomic trends evolve and earnings season continues, all eyes remain on the banks and their capacity to navigate both headwinds and opportunities in the current market environment.

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