Citi observes Commonwealth Bank has utilised the March quarter to accelerate the recognition of customer remediation across wealth management advice & products and has now dealt with key issues, so a top up in future looks less likely.
Underlying results missed expectations by -9% because of weak operating income growth and higher loan loss expenses. Citi maintains a Neutral rating and $70.50 target.
Target price is $70.50.Current Price is $72.63. Difference: ($2.13) – (brackets indicate current price is over target). If CBA meets the Citi target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).