Tuesday, October 24, 2006

CBA Australias Largest Bank

Commonwealth Bank of Australia (ASX:CBA) is Australia's largest bank in terms of sharemarket capitalisation. The company has reaffirmed its forecast for growth in cash earnings per share in 2006-07. Shares in CBA increased $A0.64 to $A47.09 on 23 October 2006, giving it a market capitalisation of $A60.7bn, compared with $A60.6bn for National Australia Bank.

CBA has indicated that it recorded strong underlying credit growth in the first quarter of 2006-07, associated with the continued sound performance of the Australian economy.

You can always bet on banks to make money and to conitnue to make money. They have a moat around their customers as it is too hard to change bank accounts.

CBA is a great bank and should continue to trend higher in the longer term and most banks are at acceptacble PE, PEG and Divi yeilds.

I will try and right an article on the best bank based on fundamentals and growth prospects in the next few days.

Good Luck Investing

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