CBA shares: What to watch out for in next week's update
CBA shares have had a bumpy ride in recent months, but analysts are expecting a positive update next week. Here's what to watch out for.
CBA shares have been under pressure in recent months due to a number of factors, including concerns about the impact of the COVID-19 pandemic on the Australian economy. However, analysts are expecting a positive update from the bank next week, when it reports its full-year results.
One of the key things to watch out for is the bank's net interest margin (NIM). This is the difference between the interest rate that the bank charges on loans and the interest rate that it pays on deposits. NIM has been under pressure in recent years due to low interest rates, but analysts are expecting it to improve in the coming months as the economy recovers.
Another key metric to watch is the bank's bad debt ratio. This is the percentage of loans that the bank has had to write off as bad debts. The bad debt ratio has been increasing in recent months due to the impact of the COVID-19 pandemic, but analysts are expecting it to stabilise in the coming months as the economy recovers.
Overall, analysts are expecting a positive update from CBA next week. The bank is expected to report a solid increase in net interest margin and a stabilisation in the bad debt ratio. This should support the share price in the coming months.
Here are some specific things to watch out for in the bank's update:
- Net interest margin: Analysts are expecting NIM to improve in the coming months as the economy recovers.
- Bad debt ratio: Analysts are expecting the bad debt ratio to stabilise in the coming months as the economy recovers.
- Loan growth: Analysts are expecting loan growth to pick up in the coming months as businesses and consumers start to borrow more money.
- Provisions: Analysts are expecting the bank to release some of the provisions that it has set aside for bad debts.
- Capital: Analysts are expecting the bank to maintain a strong capital position.
