It’s been the bubble that just won’t die. The CBA, ponderous utility with a dying business model, was misrepresented as some kind of new-age unicorn. This silliness handed it the most expensive multiple in world banking, and 50% above a peer group from which it is indistinguishable:
The problem is, with such a growth multiple, you’re supposed to grow:
Australia’s biggest bank said its net interest margin was “considerably lower” over the quarter as it battled headwinds such as low yielding cash and bonds, sharp home loan pricing and a higher proportion of low fixed rate loans on its books.
