Commonwealth Bank shares jumped 4.2 per cent yesterday to $43.70 after announcing that it had no need to raise additional capital. In a presentation to investors, the bank said that it was at the top of its target range for capital after completing its wholesale funding program for the current financial year in April. The bank reports that it has about $39 billion in liquid assets with about $10 billion being surplus and has created a $15.6 billion portfolio of residential-backed mortgage securities which it will hold for now. If needed, these could be used for repurchase agreements with the Reserve Bank to generate as much as $12.25 billion in additional capital.
