Commonwealth Bank of Australia Ltd (ASX:CBA) is the nation’s largest bank, providing banking, life insurance and related services for individuals, small businesses and medium sized commercial enterprises. It also provides corporate and general banking, international financing, institutional banking, stock broking via Commsec and funds management.
On the surface, CBA looks great – record profit, improving returns, increasing book value and resilient cash flows – but underneath the impressive historic financials leading through to FY12, just reported, strong management and margins alone won’t inure it from significant macroeconomic headwinds.
Michael Feller is an investment strategist at Macro Investor. To read this analysis in full, take up your free 21 day trial.