What the Commonwealth Bank boss just revealed—and why over 10 million Aussies could feel the financial pain
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If you’ve been keeping an eye on your superannuation balance or the news headlines lately, you might have noticed a bit of a wobble in the financial world—specifically, a sharp drop in the Commonwealth Bank’s (CBA) share price.
And if you’re thinking, 'Well, I don’t own any bank shares, so why should I care?'—think again!
More than 10 million Australians are affected by this, whether we realise it or not.
Commonwealth Bank chief executive Matt Comyn has downplayed a $20 billion drop in the bank’s value, even as the slump dents the retirement savings of millions of Australians.
While about 800,000 Australians hold CBA shares directly, more than 10 million have an indirect stake through their superannuation funds, meaning more than half the nation’s adults were affected when the share price fell sharply this week.
Any significant decline in the bank’s value can have knock-on effects for super balances, particularly for those nearing retirement.
The latest slide—a 6.6 per cent drop over two days—has been especially tough for older workers looking to preserve their nest egg.
‘Of course, we’re conscious of share price performance … more than 10 million Australians own the Commonwealth Bank, either directly or indirectly,’ Mr Comyn told ABC Radio National on Thursday. ‘But it’s really about thinking about the long-term of that performance versus any performance on a particular day.’
CBA shares, which hit a record $185 in June, have now fallen to $167.20, erasing more than $20 billion from the bank’s market capitalisation.
The slump followed the release of its 2024-25 full-year results, which showed a record $10.3 billion cash profit, but only a four per cent lift from last year.
The fall came as the bank also announced a new partnership with OpenAI to integrate artificial intelligence into transactions and scam detection.
Source: 7NEWS Australia / Youtube.
Mr Comyn would not be drawn on whether CBA shares were overvalued at their June peak, instead emphasising the bank’s role in supporting customers and delivering steady returns over time.
‘From our perspective, we focus on the things we can control … every day, we’ve helped 400 households buy a new home, we’ve lent $115 million,’ he said. ‘If we do all of those things well … we should also be able to deliver a reasonable rate of return to our shareholders over time.’
The bank’s annual report also revealed Mr Comyn’s $7 million pay package for the past year, including a $2.85 million base salary and bonuses.
The share price decline comes just days after the Reserve Bank cut the cash rate by another 25 basis points to 3.6 per cent—its lowest level since May 2023.
Read more: Thousands of customers locked out of their banking accounts: 'How are they down so often?'
Have you noticed any changes in your super balance lately? Are you worried about the impact of share market swings on your retirement? Or do you take it all in your stride, knowing that what goes down often comes back up? We’d love to hear your thoughts and experiences. Share your comments below!
And if you’re thinking, 'Well, I don’t own any bank shares, so why should I care?'—think again!
More than 10 million Australians are affected by this, whether we realise it or not.
Commonwealth Bank chief executive Matt Comyn has downplayed a $20 billion drop in the bank’s value, even as the slump dents the retirement savings of millions of Australians.
While about 800,000 Australians hold CBA shares directly, more than 10 million have an indirect stake through their superannuation funds, meaning more than half the nation’s adults were affected when the share price fell sharply this week.
Any significant decline in the bank’s value can have knock-on effects for super balances, particularly for those nearing retirement.
More than 10 million Australians have been hit by a $20 billion drop in Commonwealth Bank’s share price, affecting both direct shareholders and those with superannuation invested in the bank. Image source: 9News Australia / Youtube.
The latest slide—a 6.6 per cent drop over two days—has been especially tough for older workers looking to preserve their nest egg.
‘Of course, we’re conscious of share price performance … more than 10 million Australians own the Commonwealth Bank, either directly or indirectly,’ Mr Comyn told ABC Radio National on Thursday. ‘But it’s really about thinking about the long-term of that performance versus any performance on a particular day.’
CBA shares, which hit a record $185 in June, have now fallen to $167.20, erasing more than $20 billion from the bank’s market capitalisation.
The slump followed the release of its 2024-25 full-year results, which showed a record $10.3 billion cash profit, but only a four per cent lift from last year.
The fall came as the bank also announced a new partnership with OpenAI to integrate artificial intelligence into transactions and scam detection.
Source: 7NEWS Australia / Youtube.
Mr Comyn would not be drawn on whether CBA shares were overvalued at their June peak, instead emphasising the bank’s role in supporting customers and delivering steady returns over time.
‘From our perspective, we focus on the things we can control … every day, we’ve helped 400 households buy a new home, we’ve lent $115 million,’ he said. ‘If we do all of those things well … we should also be able to deliver a reasonable rate of return to our shareholders over time.’
The bank’s annual report also revealed Mr Comyn’s $7 million pay package for the past year, including a $2.85 million base salary and bonuses.
The share price decline comes just days after the Reserve Bank cut the cash rate by another 25 basis points to 3.6 per cent—its lowest level since May 2023.
Read more: Thousands of customers locked out of their banking accounts: 'How are they down so often?'
Have you noticed any changes in your super balance lately? Are you worried about the impact of share market swings on your retirement? Or do you take it all in your stride, knowing that what goes down often comes back up? We’d love to hear your thoughts and experiences. Share your comments below!
