On day one of the news outlet’s flagship event, discussions among a panel of high-profile CEOs have turned towards sustainability. Specifically, the green transition has been brought into focus amid skyrocketing energy prices.
ASX-listed CBA wants to fuel the transition
Firstly, shares in CBA are trading at the highest price-to-earnings (P/E) ratio premium out of the big four banks. Currently, the largest bank in Australia commands a P/E of 17.8 times.
Meanwhile, the other three major banks are fetching a multiple between 12 to 16 times. Given this, it might not come as a surprise that CBA’s CEO Matt Comyn is on the lookout for future growth drivers.
At the summit, Comyn has pointed out the ‘green transition’ as one such opportunity for the bank. Outlining the role Comyn sees CBA playing, the executive said:
We see increasing demand for sustainability-linked loans. We would love to be able to work with other large corporations… it’s not just about the carbon impact, but also what are the socio-economic impacts. How do we look at what is the most important transition… and then of course, we see a lot of opportunity around carbon credits.
In recent months, ASX-listed CBA has announced several ‘green’ loans and finance solutions. One example of this is the bank’s $50 million green repurchase agreement with Northern Trust. The funds can be put towards backing wind farms, solar farms, etc.
Commonwealth Bank share price snapshot
The past year has been a relatively rewarding one for CBA shareholders. While the S&P/ASX 200 Index (ASX: XJO) has returned a little more than 4% during the 12-month timespan, the major bank has done better.
To be precise, CBA has returned 11.1% on the ASX over the past year.
Additionally, the solid performance makes it the best performing bank out of the big four.
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