Record Commonwealth Bank of Australia (ASX: CBA) surged to a new all-time high today, touching $176.40 just after midday, before slightly easing back to $175.07 as of 3:13 pm AEST—still marking an impressive +1.53% gain for the session. The rally has added to what’s been a stellar year for the bank, with shares now up +43.75% over the past 12 months and +14.24% in 2025 alone.
This new high extends a historic run for CBA stock, which has broken through multiple price ceilings over the past two years. From crossing the $115 mark for the first time in early 2023, the bank has since surged through $120, $130, $140, and kept climbing through $150, $160, and $170—all culminating in today’s record.
Commonwealth Bank shares reached a record high near midday [Market Index]
Market Drivers Behind the Rally
1. Rising Profitability
The share price momentum follows the bank’s most recent earnings report, which delivered a robust $2.6 billion profit for the March quarter—a 6% lift from the previous quarter. Investors have responded favourably to the steady earnings stream, strong balance sheet, and well-contained loan impairments.
2. Revised Rate Cut Forecast
Adding fuel to today’s rally, CBA economists released a note on Wednesday morning bringing forward their forecast for RBA rate cuts to August and September 2025, citing moderating inflation and softening wage growth.
“The catalyst for the shift has been the RBA’s change in tone on inflation,” said CBA, maintaining its base case of four total cuts, which would bring the cash rate from 4.35% down to 3.35%.
The note also acknowledged potential downside risks globally, suggesting the RBA may have to enter “slightly stimulatory territory” if conditions deteriorate further.
Investors likely interpreted this shift in monetary policy outlook as a positive for bank margins and household borrowing—both of which tend to improve when rate easing is on the horizon.
Commonwealth Bank [IIDE]
3. Unmatched Sector Leadership
CBA now leads not only its sector but the entire Australian stock market by market cap. At $292.97 billion, it ranks #1 on the ASX, and its 43.75% one-year return dwarfs the broader ASX 200’s return of +6.86% over the same period.
CBA’s strong dividend yield, stability, and reliable performance continue to make it a preferred choice for both retail and institutional investors in uncertain macroeconomic times.
Job Cuts Raise Ethical Concerns
Despite its financial strength, the bank has drawn criticism this week following its announcement of another 163 job cuts, focused largely on customer service roles across both CBA and Bankwest. This brings the total workforce reductions to nearly 800 positions over the past 12 months.
The Financial Services Union (FSU) condemned the timing and manner of the cuts, particularly as they followed the bank’s multibillion-dollar profit announcement.
“While CBA’s profits have swollen in the past year, they have sacked almost 800 workers in piecemeal announcements,” said FSU assistant secretary Jason Hall.
The FSU has demanded more transparency from the bank and flagged concerns that these cuts are disproportionately impacting communities that have already lost local banking services—especially in Western Australia where over 150 roles have been lost this year alone.
A CBA spokesperson responded that the bank had hired nearly 3,000 new staff in 2025 and regularly reviews roles to align with customer needs, aiming to redeploy or reskill affected workers wherever possible.
Still, the move has sparked debate over the ethical balance between digital transformation and social responsibility, especially at a time when CBA is posting sector-leading profits.
Stock Activity and Technicals
Today’s trading was robust, with over 1.54 million shares changing hands, generating a turnover of $270.8 million. CBA opened at $173.10—already above yesterday’s $172.43 close—and quickly climbed to its new peak before stabilising in the afternoon.
- Day Range: $172.77 – $176.46
- VWAP: $175.04
- Bid/Ask Spread: Narrow at $175.06/$175.07—indicative of strong liquidity
- Volume vs 4-week avg: Slightly below average, but the momentum remained clearly bullish
The technical setup continues to favour the bulls. With steady higher lows and a breakout above $170 just last week, today’s new high confirms CBA’s continued upward channel.
Outlook: Is There More to Come?
The combination of cooling inflation, anticipated rate cuts, high investor confidence, and resilient earnings positions CBA for continued growth in the near term. However, questions remain about:
- How rising unemployment or housing market weakness might affect loan portfolios
- Whether the bank’s cost-cutting strategy could backfire in terms of customer service or brand reputation
- How global financial shocks may ripple through the Australian banking sector
Nevertheless, the near-term outlook appears bright. With the stock already delivering double-digit year-to-date returns and showing no signs of slowing, CBA may continue setting new records in the weeks to come.
Conclusion
Commonwealth Bank’s latest rally reflects a powerful combination of strong financials, macro tailwinds, and market dominance. Despite controversy over ongoing job cuts, investors are clearly betting on CBA’s ability to navigate the shifting economic landscape better than most.
From record profits and revised RBA expectations to surging share prices, CBA is once again proving why it’s considered the cornerstone of many Australian investment portfolios.
