Analyst Note
| Nathan Zaia |We maintain our AUD 87 fair value for wide-moat-rated Commonwealth Bank following another solid quarterly result. The short-term earnings outlook does look softer than we expected though, given the impact on margins of continued discounting to retain and attract both mortgage and deposit customers. Cash net profit after tax of AUD 2.6 billion increased a modest 1% on the quarterly average of first-half fiscal 2023, but we estimate a 2% decline from the second quarter of fiscal 2023.