They are miles ahead of their competitors in loan growth over the last couple of years, and they obviously have not sacrificed margin to achieve that, Mr Le Mesurier said.
Mr Le Mesurier, who has a $100 price target for the stock, said CBA had an enormous amount of excess capital, which it was likely to start returning to shareholders next financial year.
Commonwealth Bank tracked largely in line – if slightly behind – its big four rivals since hitting the floor during the coronavirus crash in March last year.
The nations biggest lender fell to a near eight-year low of $53.44 during the sell-off, though has since bounced by 86 per cent as equities rally on stimulus, low rates and a better-than expected economic recovery. But while CBAs rise far outstrips a 61 per cent rebound for the wider ASX 200, it still lags the rally enjoyed by its rivals over the past 14 months. ANZ and NAB shares have roughly doubled since March 23, 2020, and Westpac is close behind.
CBA shares have surged by about 17 per cent since the end of March, the sharpest rise of the big four over this period.Credit:Paul Rovere
Morningstar analyst Nathan Zaia said CBA shares did not fall as sharply as others in the early part of the crisis and its dividend reductions were less severe than peers, and investors generally regarded it as the standout of the big four.
More broadly, over a longer period of time CBA has definitely outperformed its peers, Mr Zaia said. Its had the strongest capital position, its had the highest level of provisioning, its the most cost-efficient bank and its been able to take share, which is really difficult for such a large bank.
While some banks have struggled to keep up with an influx of loan applications in recent months as the property market has boomed, Mr Zaia said CBA appeared to be handling the issue well, with its market share expanding.
That said, Morningstars estimate of fair value for the stock of $77 is significantly lower than Wednesdays record high.