Commonwealth Bank (CBA): Nobody does it better

Commonwealth Bank (CBA): Nobody does it better. CBA provided a limited 1Q15 trading update yesterday, the highlights being a 10% increase in unaudited cash NPAT to $2.3bn (BP $2.2-2.3bn), an 8% increase in underlying earnings on a PCP basis (i.e. excluding the BDD charge) and a combination of solid revenue growth including stable levels of trading income and cost discipline sustaining positive Jaws. CBA's overall quarterly trends remain healthy at the cash and underlying NPAT levels based on solid revenue growth including sensible net interest margin management and managing for profitable growth. Our price target is increased to $86.50 (previously $83.00) and we continue to rate CBA as a Buy given solid underlying fundamentals and strong organic capital generation. Click here for the full report (VIEW LINK)