CBA overstates earnings per share

Sell-side investment banks universally increased their estimate of Commonwealth Bank's profit for 2007, but also all downgraded their investment recommendation (aimed at institutional investors). JPMorgan said CBA and other Australian banks were calculating earnings per share in a way that was inconsistent with new accounting standards. JP Morgan said all the banks published inflated EPS figures, and said CBA's were the most inflated.

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