CBA Shares Drop on Margin Pressure, Bank’s Valuation Concern

Commonwealth Bank of Australia shares sank after its first-quarter profit statement highlighted continued pressure on margins amid scrutiny on the lender’s equity valuation.

The stock dropped as much as 4.9% in Sydney trading, paring this year’s advance to 8.8%. A reduced headline margin offset more signs of growth in lending to businesses. Unaudited cash profit climbed 2% to about A$2.6 billion ($1.7 billion) in the three months to Sept. 30 from a year earlier.