ASX Shares to Sell Commonwealth Bank (CBA)

Commonwealth Bank (CBA) is the nation’s largest bank by market capitalisation, with operations spanning retail, business, and institutional banking, funds management, superannuation, insurance, investments and share brokerage.

CBA also happens to be the second biggest company in the Australian share market and is widely-considered as one of the blue chip stocks.

CBA recently reported a 42% jump in FY10 cash earnings to a record $6.1 billion, topping analyst estimates of a $6.06 billion cash profit.

Write-downs came in at $2.1 billion, almost 40% lower from a year ago, and which CBA expects to continue trending lower.

CBA’s net interest margin rose 5 basis points to 2.13%, however like the other banks, its margin is being squeezed by higher funding costs.

CBA declared a final dividend of $1.70 per share, which was another record, and almost 50% higher from a year ago.  The result was also at the upper end of analyst estimates.

CBA sounded a very cautious outlook, stating that although the Australian economy is well-placed, the global outlook remains uncertain in the near-term.

As a result of its uncertain outlook, CBA was one of the shares to sell on the day of its results announcement.